(CW/743^/.Aa/<Jt.'
The
MAR IS 1^90
lAW LIBRARY
NORTH CAROLINA
REGISTER
IN THIS ISSUE
EXECUTIVE ORDER
COHs
TSiriUl |l(/3l
PROPOSED RULES
Economic and Community
Development
Education
Environment, Health, and
Natural Resources
Human Resources
Insurance
Labor
FINAL RULES
Correction
ISSUE DATE: MARCH 1 5, 1 990
Volume 4 • Issue 24 • Pages 11 63- 1225
INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE
NORTH CAROLINA REGISTER
The North Carolina Register is published bi-monthly
and contains information relating to agency, executive,
legislative and judicial actions required by or affecting
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ministrative rules and amendments filed under Chapter
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Requests for subscriptions to the North Carolina
Register should be directed to the Office of Ad-
ministrative Hearings, P. O. Drawer 1 1666, Raleigh, N.
C. 27604, Attn: Subscriptions.
ADOPTION, AMENDMENT, AND REPEAL OF
RULES
An agency intending to adopt, amend, or repeal a rule
must first publish notice of the proposed action in the
North Carolina Register. The notice must include the
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TEMPORARY RULES
Under certain conditions of an emergency nature,
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NORTH CAROLINA ADMINISTRATIVE CODE
The North Carolina Administrative Code (NCAC) is
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supplements to the initial publication available.
Requests for pages of rules or volumes of the NCAC
should be directed to the Office of Administrative
Hearings. ,
NOTE '
The foregoing is a generalized statement of the pro-
cedures to be followed. For specific statutory language,
it is suggested that Articles 2 and 5 of Chapter 150B of
the General Statutes be examined carefully.
CITATION TO THE NORTH CAROLINA
REGISTER
The North Carolina Register is cited by volume, issue,
page number and date. 1:1 NCR 101-201, April 1, 1986
refers to Volume 1, Issue 1, pages 101 through 201 of
the North Carolina Register issued on April 1, 1986.
North Carolina Register. Published bi-monthly by
the Office of Administrative Hearings, P.O. Drawer
11666, Raleigh, North Carolina 27604, pursuant to
Chapter 150B of the General Statutes. Subscriptions
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North Carolina Administrative Code. Published
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suant to Chapter 150B of the General Satutes.
Subscriptions seven hundred and fifty dollars
($750.00). Individual volumes available.
f
NORTH
CAROLINA
REGISTER
ISSUE CONTENTS
Office of Adminhtrativc Hearings
P. O. Drawer 11666
Ralei<;fi, \C 276114
(919) 733 - 267H
Julian Mann III,
Director
James R. Scarcclla Sr.,
Deputy Director
Molly \Iasich,
Director A PA Services
Staff:
Ruby Creech,
Publications Coordinator
Teresa Kilpatrick,
Editorial A ssistant
Jean Shirley,
Editorial Assistant
I. EXECUTIVE ORDER
Executive Order 106...
16.-^
II. PROI'OSED Rl LES
Economic and Community
Development
Banking Commission 1 164
Savings Institutions Division:
Savings Institutions
Commission 1171
Education
EIementar>' and Secondary
Fducation 1218
En\ironment, Healtii, and
Natural Resources
rn\ironmcntal Management.... 1217
Human Resources
AFDC 1198
I'acilit) Senices 1 188
Insurance
Engineering and Building
Codes 1199
Labor
Apprenticeship and
Iraining Division 1216
III. I INAE RIEES
Correction
Di\ision of Prisons 1220
n . ClMl LATIVE INDEX 1222
NORTH CAROLINA REGISTER
Publication Schedule
(January 1990'- December 1991)
Issue
Last Day
Last Day
Earliest
+
Date
for
for
Date for
Earliest
Filing
Electronic
Public
Effective
Filing
Hearing &
Adoption by
Agency
Date
++++++++
++++++♦+
++++++♦*
*+++++++
++++++++
01/02/90
12/07/89
12/14/89
02/01/90
05/01/90
01/16/90
12/20/89
12/29/89
02/15/90
05/01/90
02/01/90
01/10/90
01/18/90
03/03/90
06/01/90
02/15/90
01/25/90
02/01/90
03/17/90
06/01/90
03/01/90
02/08/90
02/15/90
03/31/90
07/01/90
03/15/90
02/22/90
03/01/90
04/14/90
07/01/90
04/02/90
03/12/90
03/19/90
05/02/90
08/01/90
04/16/90
03/23/90
03/30/90
05/16/90
08/01/90
05/01/90
04/09,90
04/17/90
05/31/90
09/01/90
05/15/90
04/24,90
05/01/90
06/14/90
09/01/90
06/01/90
05/10/90
05/17/90
07/01/90
10/01/90
06/15/90
05/24/90
06/01/90
07/15/90
10/01/90
07/02/90
06/11/90
06/18/90
08/01/90
11/01/90
07/16/90
06/22,90
06/29/90
08/15/90
11/01/90
08/01/90
07/11/90
07/18/90
08/31/90
12/01/90
08/15/90
07/25/90
08/01/90
09/14/90
12/01/90
09/04/90
08/13/90
08/20/90
10/04/90
01/01/91
09/14/90
08/24/90
08/31/90
10/14/90
01/01/91
10/01/90
09/10/90
09/17/90
10/31/90
02/01/91
10/15/90
09/25/90
10/02/90
11/14/90
02/01/91
11/01/90
10/11/90
10/18/90
11/30/90
03/01/91
11/15/90
10/24/90
10/31/90
12/14/90
03/01/91
12/03/90
1 1/08/90
11/15/90
01/02/91
04/01/91
12/14/90
11/21/90
11/30/90
01/13/91
04/01/91
01/02/91
12/07/90
12/14/90
02/01/91
05/01/91
02/01/91
01/10/91
01/18/91
03/03/91
06/01/91
03/01/91
02/08/91
02/15/91
03/31/91
07/01/91
04/01/91
03/11/91
03/18/91
05/01/91
08/01/91
05/01/91
04/10/91
04/17/91
05/31/91
09/01/91
06/03/91
05/10/91
05/17/91
07/03/91
10/01/91
07/01/91
06/10/91
06/17/91
07/31/91
11/01/91
08/01/91
07/11/91
07/1.8/91
08/31/91
12/01/91
09/03/91
08/12/91
08/19/91
10/03/91
01/01/92
10/01/91
09/10/91
09/17/91
10/31/91
02/01/92
11/01/91
10/11/91
10/18/91
12/01/91
03/01/92
12/02/91
11/07/91
11/14/91
01/01/92
04/01/92
* The "Earliest Effective Date" is computed assuming that the public hearing
and adoption occur in the calendar month immediately following the "Issue
Date", that the agency files the rule with The Administrati\-e Rules Review
Commission by the 20th of the same calendar month and that ARRC approves
the nile at the next calendar month meeting.
EXECUTIVE ORDER
EXECUTIVE ORDER MJMHER 106 The State Employees Combined Campaign, es-
AMENniNG EXECITIVE ORDER MMBER 66 tablished by Iixecutivc Order Number 66, on
EMENDINC. EXI'IRAIION DAIE OF , on looo u k . ^ ^ ff ,•
EXECL■TIVE ORDER MMBFR 66 January 29, 1988, is hereby extended, eliective
January 29, 1990, through January 29, 1992.
By the authority vested in me as Governor by
the Constitution and laws of North Carolina, IT Done in Raleigh, North Carolina, this the 22
IS ORDERED: day of February 1990.
4:24 NORTH CAROLINA REGISTER March 15, 1990 1163
PROPOSED RULES
TITLE 4 DEPARTMENT OF ECONOMIC
AND CO.MMLJMTY DEVELOPMENT
lyotice is hereby given in accordance with G.S.
I SOB- 1 2 that the North Carolina Banking Com-
mission intends to amend rule(s) cited as 4
NCAC 3C .0101 - .0102, .0104, .0110 - .0111,
.020/ - .0202, .0301, .0401, .0403 - .0406, .1301,
.1501 - .1502; and adopt nde(s) cited as 4 NCAC
3C .0203 - .0204, .0408.
1 he proposed effective date of this action is July
I. 1990.
1 he public hearing will be conducted at 8:30
a.m. on April 25. 1990 at North Carolina Banking
Commission. Dobbs Building - 6th Floor (Room
6210), 430 North Salisbury Street, Raleigh, North
Carolina.
Co
- omment Procedures: Comments must be sub-
mitted in writing not later than Friday, April 20,
J 990. Written comments should be directed to:
L. McNeil Chestnut
General Counsel
North Carolina Banking Commission
Post Office Box 29512
Raleigh, North Carolina 27626-0512
CHAPTER 3 - BANKING COMMISSION
SUBCHAPTER 3C - BANKS
SECTION .0100 - ORGANIZATION AND
CHARTERING
.0101 APPLICATION
A new bank, industrial bank or trust company
shall be incorporated and chartered in the man-
ner prescribed in G.S. 53-2 through G.S. 53-8
and in no other way. iXpplicutionf . mui . t bt» m
tfet* format required a«4 mu - jt be (+1<*4 aloni; V i ith
t4*t» propo^ ' ud CL ' ilii'icdtL ' ef incorpcMation ft«4
proL i cribod fee with: A charter application, on an
fonn approved, together with a cop\' of the pro-
posed .■Vrticles of Incorporation and payment of
the prescribed fee, must be tiled with:
1 he Comrmssioner of Banks
P.O. Box 0^ 20512
Raleigh, North Carolma ¥imi 27626-0512.
Statutory Authority
I50B-llill.
G.S. 53-2: 53-92;
.0102 EXAMINATION BY CO.MMISSIONER
Upon receipt of a copy of the CL'rtificatc ef m-
corporation ftft4 ik» application m proper fomi.
application and articles of incorporation, the
Commissioner of Banks uhuli will make an ex-
amination into all the facts connected with the
formation of ouch the proposed corporation.
bank or trust company. Such The examination
jr hull will take into account all statutory require-
ments and criteria.
Statutory Authority
I50B-Il(l).
G.S. 53-4;
53-92;
.0104 REVIEW BY BANKING COMMISSION
Such The report by of the Commissioner of
Banks shall will be submitted to the Banking
Commission at a regular or called meeting.
Following a public hearing the Banking Com-
mission I ' hiill will issue its fmal order approving
or disapproving the application.
Statutory Authority
l50B-li(l).
G.S. 53-4;
53-92;
.0110 ORGANIZ.ATIONAL EXPENSES
(a) Fach oubgcribor **■ Ae time he nubf i cribon to
t4*e stock e4 a propoL . od ntate bank f i hcdl L pon
subscribing to the stock of a proposed state bank,
each subscriber must pay in cash a sum at least
equal to the aggregate of five and one-half per-
cent of the par value and surplus of such stock
into a fund to be used to defray the expenses of
organization. No organizational expenses shall
may be paid out of any other funds of the bank.
Upon the grant of a charter and authorization
by the Commissioner to commence business, any
unexpended balance shall must be transferred to
the permanent surplus account. If the charter
has been voided for failure to open for business
within the time set out in the statute after fding
of the ccilificdte articles of incorporation with the
Secretary' of State or any additional period al-
lowed by the Commissioner, or if the application
has been fmally denied, any unexpended balance
'i hall must be distributed pro rata to the contrib-
utors in proportion to their respective payments.
The Commissioner may require an accounting
of any disbursements from the fund and may or-
der the incorporators to restore any sum which
has been expended for other than proper organ-
izational expenses.
(b) ^ro payment shall be mudo fro m (4*e organ
i/.ational fund fof s e curing subscriptions te shares
ef stock rf t-he banlc. If commissions or fees are
to be paid to an\' person, partnership, or corpo-
ration for secunng suhscnptions to shares of
stock of the proposed bank, the agreement set-
ting forth the amount and tenns of such pa\ment
and the nature of services to be performed must
II64
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
be submitted to the (x:)mmissioner of Banks in
advance tor review and approval.
Statutory Authority G.S. 53-2: 53-92; 53-104;
I50B-1I(I).
.011 1 NATIONAL BANK CONVERSION
(a) A national hank may convL ' rt k* a ! itutL'
bank. A LX ' rtifiiatu e+' incorporation mu '. t bt» n*-
ocutc ' d A*rt e««- b*» obtained from aft4 r . hould be
fA?4 ^'ith: A national bank may appl\- for au-
thoritv to convert to a state bank. An applica-
tion for conversion mnst be made on 1 orm 30
The application for con\ersion, together with a
copy of the proposed articles of incorporation
and pa\ment of the prescribed fee, must be tiled
with:
44«* S e cr e taPi' »f Stato
Stat e <r4 Noilh Carolina
I e ai '. lativ e Office Ruilding
^Um North Sali ' ibur , - Street
Raleigh, North Carolina 27611.
The Commissioner of Banks
The Commissioner ' ihall will issue to the bank a
Bank Certificate (I'orm 45) and any Branch
Certificate (F-orm 47) as needed.
'.(). Box 2^512
Raleigh. North Carolina 27626-0512.
Tb« Socrotapy »f State !ihall forth' . vith traiT . mit »
copy e+" StH4 certificate »f incorporation k> A<*
Conimi ' - .i' ioner »f Bankii.
M*) Application f»f i* national bank k* con> e rt
te a state bank i* accompli ' jh e d through the e^w-
cution &f form :^ 44*e form pro>ide ' j fc the
iiubmission evf required information aft4 eaft be
obtain e d from aft4 t+le4 with:
T4*e Commir .'. ioner »f Banko
Ral e igl-i, North Carolina 27602.
fb) fe^ Upon receipt of a copy of the c e rtificate
articles of incorporation and the completed ap-
plication for conversion, ift proper f(um, the
Commissioner shall will make an examination
ixito all the facts connected with the conversion.
Following the completion of that examination
the Commissioner will shall prepare a report
cohering Ae re 'i ults e+' tkte examination aUMTg
with b+s deci '. ion fof appro v;il e* di ' ^ipprosal e+'
the application. 44*e report shall be S i ubmilled
te the Banking ("ommis . sion a4- a r e gular tvf called
m ee ting, folkv , ' , ing a public hearing Ae Banking
Commis 'i ion shall i -. s . iie ite final order iippnning
e* disiipprov ing t+te application, issue a written
decision appnn'ing or disappro\ing the applica-
tion.
(c) (-4+ Upon approval by the Banking Com
mission, t4te Commissioner of Banks, shall he
will forward to the SecretaPi' of State for appro-
priate tiling the Certificate articles of incorjio-
ration along with a the certification of approval.
Statutory Authority G.S. 53-
53-14; 53-104; 1508-11(1).
53-3; 53-4; 53-5;
SFXTION .0200 - BRANCIIKS ANH IJMITED
SEKVICK FACILITIES
.0201 ESTABLISHMENT OF BRANCHES AND
LIMll El) SERVICE FACILILIES
^W bank s i hall Banks may establish a brunch
^ful, ",!.';"» if^ branches or tell e r's , ' . sindosv ' . vithout Ae limited
service facilities upon written approval of the
Commissioner of Banks.
( 1) Application. Applications mus . t be m- the
fonnat reL|uired awd filed, together V i ilh f*Fe-
Gcnbed fees. v . ith: ,\n application to estab-
lish a branch bank or limited ser\'ice facility
must be submitted in wnting on fOrm 30.
together x^ith the pre-
T he application.
scribed tee. must be tiled with:
I he ("ommissioner of Banks
P.O. Box 0^4- 29512
Raleigli, North Carolina 27602. 27626-0512.
(2) Notice of filing of an application. Upon
acceptance of an application for filing, the
Commissioner of Banl;s shall will publish a
notice of the filing of the application in a
newspaper published in the city, town or
county where the branch or teller's \sindow
limited sen, ice facility is proposed to be lo-
cated. /\ copy of the notice shall will be
mailed to each state-chartered bank operat-
ing a banking office in the community to be
served by the proposed branch or teller's
window, limited service facility. A copy of
the notice shall \\\\\ be mailed to the Re-
gional Administrator of National Banks for
the National Bank Region for North
Carolina.
(3) Written comments. Any interested person
may submit to the Commissioner of Banks
written comments and information on an
application witlun 14 days after the notice
has been published as pro\idcd in Paragraph
(2) of this Rule. All written comments re-
ceived during the comment period shall will
become part of the official record compiled
with respect to the application. The Com-
missioner of Banks ma)' extend the com-
ment period if he shcdl determine determines
that there are extenuating circumstances.
(4) Examination by Commissioner. Upon
receipt of an- a completed application, »
proper fonn the Commissioner of Banks
shall will conduct an examination into all
4:24 NORTH CAROLINA REGISTER March 15, 1990
II 65
PROPOSED RULES
the facts connected with the establishment
of s«efe a branch or toUor'o window. limited
service facility.
(5) Action by Commissioner. No final deci-
sion may be made by the Commissioner of
Banks until the comment period has ex-
pired. The final decision of the Commis-
sioner of Banks on an application r . hall will
be in writing and shall include findings of
fact and conclusions of law.
(6) Notification of Commissioner's action.
The applicant and all persons who have
made written requests for such f . hall notice
will be given notice of the Commissioner of
Banks' fmal decision on each application.
(7) Request for review by Banking Commis-
sion. The applicant or any interested person
may request the State Banking Commission
to review the decision of the Commissioner
of Banks with respect to an application to
establish a branch or tell e r's window limited
servace facility within 14 days from the time
the Commissioner of Banks issues his writ-
ten decision. Such The request for review
must be in writing and must be sent to the
address shown in Paragraph (1) of this Rule.
(8) Review by Banking Commission. When
requested by the applicant or any interested
person, the decision of the Commissioner
of Banks shttW will be reviewed at a public
hearing by the State Banking Commission
at its next regular or called meeting. Fol-
lowing the public hearing, the State Banking
Commission shall will issue its fmal order
approving, modifying or disapproving the
decision of the Commissioner of Banks.
Notice of the public hearing shall will be
published in a newspaper published in the
city, town or county where the proposed
branch or toller's ' . ' . indo^' .' limited service fa-
cility is to be located at least ten days prior
to the scheduled hearing.
(9) Decision by Commissioner final. If there
has been no written request for review
within the 14-day period as provided in
Paragraph (7) of this Rule, the decision is-
sued by the Commissioner of Banks shall
wiU become fmal with respect to the appli-
cation.
(10) Waiver by Commissioner. Wfierc a bank
acquires one or more branches or tcUors'
' . vindows limited service facilities in con-
nection with a reorganization in which the
Commissioner of Banks or other bank reg-
ulator has found one or more banks to be
in an insolvent, unsafe or unsound condi-
tion, the requirements of this Rule pertain-
ing to notice and publication, time
limitations, and comment may be waived by
the Commissioner of Banks.
Statutory Authority G.S. 53-4; 53-62; 53-92;
I50B-II(1).
.0202 BRANCH CLOSING
No bank shall discontinu e may close a branch
ef toller's window without the written approval
of the Commissioner of Banks.
(1) Procedure. The procedures provided in
G.S. 53-62(e) shall must be followed in
connection with any branch or teller's win-
dow discontinuanc e , closing. The required
public notice to be published shall must be
approved by the Commissioner of Banks
prior to publication.
(2) Written comments. Any interested person
may submit to the Commissioner of Banks
written comments and information on an
application to discontinue within 14 days
after the last notice has been published as
required by G.S. 53-62(e). /Ml written
comments received during the comment pe-
riod shall will become part of the official re-
cord compiled with respect to the
application. The Commissioner of Banks
may extend the comment period if he shall
dotormino determines that there are exten-
uating circumstances.
(3) Examination by Commissioner. Upon
receipt of a certification an application, the
Commissioner of Banks shall wiU conduct
an examination into all the facts connected
with the disGontinuanco ef such request to
close a branch. »f teller's ' ■ ' . indow. The
Commissioner of Banks shall will hold a
public hearing as provided in G.S. 53-62(e)
if there has been an appropriate request by
an interested person.
(4) Action by Commissioner. No final deci-
sion may be made by the Commissioner of
Banks until the comment period has ex-
pired. The fmal decision of the Commis-
sioner of Banks on an application to
discontinue shall will be issued in writing
and shall include findings of fact and con-
clusions of law.
(5) Notification of Commissioner's action.
The applicant and aO persons who have
made written requests for such shall notice
will be given notice of the Commissioner of
Banks' final decision on each apphcation.
(6) Request for review by Banking Commis-
sion. The applicant or any other interested
person may request the State Banking
Commission to review the decision of the
Comniissioner of Banks with respect to an
1166
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
application to discontinue a branch ef
tollor's window within 14 days from the time
the Commissioner of Banks issues his writ-
ten decision. Such The request must be in
writing and sent to:
The Commissioner of Banks
P.O. Bo.\Q»4- 29512
Raleigh, North Carohna ¥W^ 27626-0512.
(7) Review by Banking Commission. When
requested by the applicant or by any inter-
ested person, the decision of the Commis-
sioner of Banks i . hall will be reviewed at a
public hearing by the State Banking Com-
mission at its next regular or called meeting.
Following the public hearing, the State
Banking Commission nhall will issue its final
order approving, modifying or disapproving
the decision of the Commissioner of Banks.
Notice of the public hearing shall will be
published in a newspaper published in the
city, town or county where the branch e*
toller's window is to be discontinued at least
ten days prior to the scheduled hearing.
(8) Decision by Commissioner final. If there
has been no written request for review
within the 14-day period as provided in
Paragraph (6) of tliis Rule, the decision is-
sued by the Commissioner of Banks shall
will become final with respect to the appli-
cation to discontinue.
(9) Waiver by commissioner. Where a bank
discontinues one or more branches ©f toUoro'
' I ' l indo' i VH in connection with a reorganiza-
tion in which the Commissioner of Banks
or other bank regulator has found one or
more banks to be in an insolvent, unsafe,
or unsound condition, the requirements of
this Rule pertaining to notice and publica-
tion, time limitations, and comment may be
waived by the Commissioner of Banks.
Statutory! Authority G.S. 53-4; 53-62; 53-92;
150B-II(I).
.0203 DISCONTINUANCE OF A Ll.MITED
SKRVICE [<AC[LITY
(a) A bank may close a Limited service facility
upon 30 days written notice to the Commissioner
of Banks at the address set forth in Paragraph (1),
provided that the facility has not within a five
year period immediately proceeding the proposed
date of closing operated as a branch bank. If the
limited service facility which the bank proposes
to close has operated as a branch bank within a
five year period immediately proceeding the pro-
posed closing date, then the procedure set forth
in 4 NCAC 3C .0202 must be foUowed.
(b) For the purpose of this Rule, any bank and
office approved as a "teller's window" prior to
.July 1, 1989, is considered and wiU be treated as
a limited service facility.
Statutory Authority G.S. 53-62; I50B-II(I).
.0204 CONVERSION OF BRANCH TO
LIMITED SERVICE FACILITY
A bank may convert a branch to a hmited ser-
vice facility upon written approval of the Com-
missioner of Banks.
(1) Procedure. Any bank desiring to convert
an existing branch to a limited service facility
must apply in writing for authority to do so
from the Commissioner of Banks and pay
the prescribed fee. The letter must identify
the name and' location of the branch to be
converted, the reason for the conversion, the
ser\'ices presently offered at the branch, and
the ser\'ices that will be discontinued upon
conversion.
(2) Publication. L'pon receipt of a written re-
quest for authority to convert a branch to a
limited service facility, the Commissioner of
Banks will publish once a week for two
consecutive weeks in a newspaper published
in the city, town or county in which the
branch to be converted is located, a public
notice of the request to convert. This pub-
lication must include the name and location
of the branch to be converted, and must
identify the services presently offered at the
branch that wiU be discontinued upon con-
version.
(3) Written comments. /Vny interested person
may submit to the Commissioner of Banks
written comments and information on an
application to convert a branch to a limited
service facility within 14 days after the last
notice has been published pursuant to Para-
graph (2) of this Rule. AU written com-
ments received during the comment period
will become part of the official record com-
piled with respect to the application. The
Commissioner of Banks may extend the
comment period if he determines that there
are extenuating circumstances.
(4) Examination by Commissioner. Upon re-
ceipt of an application to convert, the
Commissioner of Banks will conduct an ex-
amination into aU the facts connected with
the conversion of a branch. The Commis-
sioner of Banks will hold a public hearing if
there has been an appropriate request by an
interested person. ^
(5) Action by Commissioner. No final deci-
sion may be made by the Commissioner of
4:24 NORTH CAROLINA REGISTER March 15, 1990
1167
PROPOSED RULES
Banks until the comment period has ex-
pired. The final decision of the Commis-
sioner of Banks on a request to convert a
branch to a limited service facility wUl be is-
sued in writing and include findings of fact
and conclusions of law.
(6) Notification of Commissioner's Action.
The applicant and all persons who have
made written requests for notice will be
given notice of the Commissioner of Banks'
final decision on each appfication.
(7) Request for Review by Banking Commis-
sion. The applicant or any other interested
person may request the State Banking
Commission to review the decision of the
Commissioner of Banks with respect to an
application to convert a branch to a limited
service facility within 14 days from the time
the Commissioner of Banks issues his writ-
ten decision. The request must be in writing
and sent to:
The Commissioner of Banks
P.O. Box 29512
Raleigh, North Carolina 27626-0512
(8) Decision by Commissioner Final. If there
has been no written request for review
within the 14-day period as provided in
Paragraph (7) of this Rule, the decision is-
sued by the Commissioner of Banks will
become final with respect to the request to
convert.
Statutory Authority G.S. 53-62; 53-92;
l50B-li(l).
SECTION .0300 - CHANGE OF LOCATION
.0301 CHANGE OF LOCATION/MAIN OFFICE,
BRANCH OR LTD SVC FACILITY
No bank i . huU may change the location of a
branch, tolic ' r'T i window limited service facility or
main office without the wnttcn approval of the
Commissioner of Banks.
(1) Application. Applications must be in the
format required and filed, together with the
prescribed fewrr fee, with:
The Commissioner of Banks
P.O. Bo.xO^ 29512
Raleigh, North Carolina 27602. 27626-0512.
(2) Notice of filing of an application. Upon
acceptance of an application for filing, the
Commissioner of Banks iihuU will publish a
notice of the filing of the application in a
newspaper published in the city, town or
county where the branch, tL'llor' ' j ' i vindosv
limited service facility or main olTice is to be
located. A copy of the notice r . hall will be
mailed to each state-chartered bank operat-
ing a banking office in the community
served by the branch, tL'Uor'o window limited
ser\'ice facility or main office. A copy of the
notice F i hall wiU be mailed to the Regional
Administrator of National Banks for the
National Bank Region for North Carolina.
(3) Written comments. Any interested person
may submit to the Commissioner of Banks
written comments and information on an
application within 14 days after the notice
has been published as provided in Paragraph
(2) of this Rule. All written comments re-
ceived during the comment period shall wiU
become part of the official record compiled
with respect to the application. The Com-
missioner of Banks may extend the com-
ment period if he r . hall dct ermine determines
that there are extenuating circumstances.
(4) Examination by Commissioner. Upon re-
ceipt of aft a completed application »
proper form for relocation the Commis-
sioner of Banks t i huU will conduct an exam-
ination into all the facts connected with the
change of location. »f such brunch, teller's,;
window »f main office.
(5) Action by Commissioner. No fmal deci-
sion may be made by the Commissioner of
Banks until the comment period has ex-
pired. The final decision of the Commis-
sioner of Banks on an application r . hull will
be issued in writing and shall will include
findings of fact and conclusions of law.
(6) Notification of Commissioner's action.
The applicant and all persons who have
made written recjuest for ouch i . hall notice,
will be given notice of the Commissioner of
Banks' final decision on each application.
(7) Request for review by Banking Commis-
sion. The applicant or any interested person
may request the State Banking Commission
to review the decision of the Commissioner
of Banks with respect to an application to
relocate a branch, teller's svindow limited
service facility or main office within 14 days
from the time the Commissioner of Banks
issues his written decision. Such The re-
quest for review must be in writing and must
be sent to the address shown in Paragraph
(1) of this Rule.
(8) Review by Banking Commission. When
requested by the applicant or any interested
person, the decision of the Commissioner
of Banks shall will be reviewed at a public
hearing by the State Banking Commission
at its next regular or called meeting. Fol-
lowing the public hearing, the State Banking
Commission shall will issue its final order
approving, modilVing or disapproving the
116S
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
decision of the Commissioner of Banks.
Notice of the public hearing shaW will be
published in a newspaper published in the
city, town or county where the branch,
toiler's window limited service facility or
main office is to be located at least ten days
prior to the scheduled hearing.
(9) Decision by Commissioner fmal. If there
has not been ho a written request for review
within the 14-day period as provided in
Paragraph (7) of this Rule, the decision is-
sued by the Commissioner of Banks shall
will become final with respect to the appli-
cation.
Statutoiy Authority G.S. 53-62; 53-92.
SECTION .0400 - CONSOLin.ATION OF B.\NKS
.0401 AIM'LIC.\TION
(a) Before a bank shall may consolidate with
or transfer its assets and liabilities to another
bank it shall must first obtain the consent of the
Commissioner of Banks. This Rule shall does
not apply where such the consolidation or merger
is with a national bank and the surviving corpo-
ration is to be a national bank.
fb^ i\pplication fof such consont shall b# a<^
compli ' - ' hL'd by At> filing with U** Commissionur
e+" Banlcs CLMlificd copi e s ef all- procoodingo hTi4
by tbt* banks' directors a«4 stockholdurs a^ weW
a* a complotL' copy t4 t4*e agroomont made* a«4
LMitorcd iftk+ bot' i VOL'n At* banks, ssilh rL'toruncc te-
such coiisolidation t+f trctusfor nfi^ t+w oxocution
©f Fl^lC ['omi 4437 That form incoi-poratos aW
statutoiy roquiromonts aft4 criteria im4 contains
mark e ting LJata. xirious financud schodiik's aH4
appropnate cons ^ ideratitm h+ competiti' ie factors.
44*e to mi f»ay be obliun e d from:
(b) Application for consent to consolidate must
be accomplished bv filing with the Commissioner
of IJanks the following:
( 1 ) certified copies of all the procccdinus bv
the banks' directors and stockholders:
(2) a copy of the aurecmcnt to consolidate:
and
(3) 1 Die borm 1(12.
The latter fonn incorporates all statutoi^v re-
quirements and cnlena and contains marketing
data, \anous financial schedules and appropnate
consideration of competitive taclors. 1 he torm
ma\' be obtained trom:
Regional Director
- lederal Deposit Insurance Corporation
?|^ i^ Matft Street. ^kHte JQOO
Richmond. Virginia 232 b'i
Marciuis One lower
245 Peachtree Center Avenue, N.F., Suite 1200
Atlanta, (ieoriaa 30303
and should be filed, together with the prescribed
fee, with:
The Commissioner of Banks
P.O. Box 044- 29512
Raleigh, North CaroUna 27602. 27626-0512.
Statutorv Authority G.S. 53-12; 53-92;
l50B-li(l).
.0403 INAESTIGATION
Upon receipt of t4+e a completed application for
consolidation wi proper form the Commissioner
of Banks shall make an investigation into all the
facts connected with the proposed consolidation.
Such The investigation shall will take into ac-
count all statutory requirements and criteria.
Statutory
I50B-II(I).
Authority G.S. 53-/1
53-92;
.0404 RF.I'ORT
Following the completion of ihai- the insesti-
gation, the Commissioner of Banks shall prepare
a issue a written report cosenng (4+e re '. ulls t+f
tbat- in' i es i tigation along with including his deci-
sion for approval or disapproval of the applica-
tion.
Statutory .Authority
I50B-Ii(l).
G.S. 53-/2; 53-92;
.0405 REMEW in HIE BANKING COMMISSION
■Such report by f4+e Commissioner (-4 Banks
shall The Commissioner's report will be submit-
ted to the Banking Commission at a regular or
called meeting. Following a public hearing, the
Banking Commission shall will issue its final or-
der approving or disappro\ing the application.
Statutory Authority G.S. 53-/2; 53-92;
/50B-/ /'(/).
.0406 EIEING Willi SECRE^VR^ Ol SI AIE
l.'pon the consummation of such the consol-
idation, the agreement of consolidation, along
toijcther with a certified copy of the approval by
tlie Commissioner of Banks, shall be filed with
the Secretary of State.
Statutoiy .Authority
/ 50 B-/ /'{/).
G.S. 53-/3; 53-92
.0408 PLBI.ICATION
Notice of the consolidation or transfer must be
pubhshcd for four weeks before or after the same
4:24 NORTH CAROLIN.A REGISTER March 15, 1990
1169
PROPOSED RULES
is to become effective, at tiie discretion of the
Commissioner of Banks, in a newspaper pub-
lished in a city, town, or county in which each
said bank for consolidation is located. A certified
copy of the affidavit of publication must be filed
with the Commissioner of Banks.
Statutoiy Authority G.S. 53-12; 53-92;
I50B-1I(I).
SECTION .1300 - B.ANK PERSONNEL
.1301 ANNUAL VACATION
(a) Every bank or branch thereof under the
supervision of the Commissioner of Banks, uhall
must grant to each officer and to- oauh employee
an annual vacation period of at least six working
days. Such The annual vacation period must be
granted on consecutive working days and each
officer and oach employee shall must remain ab-
sent from his duties continuously fof Ae sa*4
numbor ef woricing days: througliout the vaca-
tion period. Provided, however, that any bank
or branch that remains closed on Saturdays and
Sundays must tvp othL'rwir . L' opc ' iat e- .i »» a fi' i x' day
V i L'ok, *T pro' i idod by lawr shull grant to each of-
ficer and fr& oach employee an annual vacation
period of at least five consecutive working days.
Upon request of any bank or branch thereof, the
Commissioner of Banks, in his discretion, may
waive the provisions of this regulation so far as
it pertains to any individual officer or employee,
or group or class of officers or employees, when,
in the Commissioner's opinion, ouch the waiver
would not be inconsistent with the general pur-
poses of this regulation.
(b) This Regulation r . hall apply »ftly does not
apply to those officers and employees who have
been in a bank's employment for a period of
mor e less than one year. Neither does this Reg-
ulation apply to employees of a bank's in corpo-
rated subsidiary when the employee does not
pertorm any banking services or duties for the
parent bank.
Statutoty Authority G.S. 53-92; 53-104:
l50B-ll(l).
SECTION .1500 - AUTOMATION AND DATA
PROCESSING
.1501 CUSTOMKR-BANK COMMUNICATION
TERMINALS
(a) A state bank may make available for use
by its customers one or more electronic devices
or machines through which the customer may
communicate to the bank a request to withdraw
money either from his account or from a previ-
ously authorized line of credit, or an instruction
to receive or transfer funds for the customers'
benefit. The device may receive or dispense cash
in accordance with such a request or instruction,
subject to verification by the bank. Such These
devices may be unmanned or marmed by a bona
fide third party under contract to the bank, 'fhe
bank for a reasonable period of time may provide
one of its employees to instruct and assist cus-
tomers in the operation of the device. Any
transactions initiated by such a device shall be
subject to verification by the bank either by di-
rect wire transmission or otherwise.
(b) Use of such devices at locations other than
the main office or a branch office of the bank
does not constitute branch banking. A bank
shall provide insurance protection under its
bonding program for transactions LnvolvLng such
devices.
(c) No device for which notice must be given
under this Rule may be established or used by a
state bank at a distance greater than 50 miles
from the bank's main office or closest branch,
whichever is nearer, unless such device or ma-
chine is available to be shared at a reasonable
cost by one or more local (i.e., within the trade
area of the device or machine) fmancial insti-
tutions authorized to receive deposits, such as a
commercial bank, a savings and loan association,
or a credit union.
(d) Written notice must be given to the Com-
missioner's office 30 days before changing any of
the operations described in a notice previously
given pursuant to this Paragraph. One or more
state banks sharing one or more devices or ma-
chines may give a single notice to the Commis-
sioner's office, provided that the notice includes
the information listed in Paragraph (1) of Rule
.1502 of this Section for each shared device or
machine. The Commissioner reserves the right
to adopt different reporting procedures as war-
ranted by the circumstances of a particular net-
work of devices or machines.
(e) No notice need be given for any device or
machine which is used only to transfer funds for
goods or services received, and through which
neither cash is dispensed nor cash or checks left
for subsequent deposit; is used solely to verify a
customer's credit for purposes of check casliing
or of a credit card transaction; or is a part of a
bank's authorized main office or branch.
Staiutorv Authority G.S. 53-62; 53-92; 53-/04;
I50B-II{I).
.1502 LIMITATIONS
The establishment and use of these devices is
subject to the following limitations:
1170
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
(1) Contents of Notice. Written notice must
be given to the Commissioner of Banks' of-
fice 30 days before any such device is put
into operation. Such The notice ohall must
describe with regard to the device or ma-
chine:
(a) the location;
(b) a general description of the area where it
is located--e.g., shopping center, gasoline
station, supermarket-and the manner of
installation--e.g., free standing, exterior
wall, separate interior booth;
(c) the manner of operation, including
whether the device is on-line;
(d) the kinds of transactions which will be
performed;
(e) whether the device will be manned, and,
if so, by whose employees;
(f) whether the device will be shared, and, if
so, under what terms and with what other
institutions and their locations;
(g) the manufacturer and, if owned, the pur-
chase price or, if leased, the lease pay-
ments and the name of the lessor;
(h) the distance from the nearest banking of-
fice and from the nearest similar device of
the reporting bank;
(i) the distance from the nearest banking office
and nearest similar device of another
commercial bank, which will not share the
facility, and the name of such other bank
or banks; and
(j) consumer protection procedures, includmg
the disclosure of rights and liabilities of
consumers and protection against
wrongful or accidental disclosure of con-
fidential information.
(2) To the extent consistent with the antitrust
laws, state banks are permitted, but not re-
quired, to share such devices with one or
more financial institutions.
Statuton' Authority G.S. 53-62; 53-92; 53-104;
I50B-Il(l).
•k'k'k'k'k-k'k-k-k-^-k-k-k-kii-k-k-k
No
otice is hereby gtfen in accordance with G.S.
150B-I2 that the Savings Institutions Division in-
tends to amend nde(s) cited as 4 NC.4C I6A
.0/03 - .0105; I6B .000/ - .0002; /6C .0/0/.
.0201. .040/ - .0403. .050/, .0503; /6D .0/0/,
.0202. .030/, .0403 - .0405, .0407, .0806 - .0807,
.090/: I6F .000/ - .0002. .0005; /6H .000/,
.0007; /6I .0702 - .0^03, .080/ - .0803. .090/ -
.0902, ./OO/, ./003, .//O/ - .//02, .//04 - .//06;
/6J .000/ - .0002; repeal ndc(s) cited as 4 ^CAC
/6D .0/02, .0/04. .0406. .0408, .0503, .0505.
.060/ - .0602; /6F .0004; 161 .0701, .0903 -
.0904; and adopt rule(s) cited as 4 NCAC /6A
.020/ - .0203, .030/ - .0302, .040/ - .0409; /6C
.0304 - .0305; /6D .0902; /6l .0704, ./20/ -
./203, ./30/ - ./302.
1 he proposed effective date of tliis action is .luly
/, /990.
1 he public hearing will be conducted at 10:00
a.m. on .April /7, /990 at Room 2/60, Dobbs
Building, Raleigh, N.C.
(^ omment /Procedures: Written comments must
be received at the agency address by 5:00 p.m..
April /6, /990. Oral presentations of up to ten
minutes may be made at the Hearing. Any
questions concerning rules or the Hearing may be
directed to Ronald Raxter at (919) 733-3525.
CHAF'TKR 16-S.\MNGS INSTITLTIONS
DIVISION: SAVINGS INSTITLTIONS
COVIMISSION
SUBCHAPTER I6A - GENERAL PROVISIONS
SECTION .0100 - GENERAL
.0103 DEFINITIONS
W'hc ' n uwd m (44^ (Chapter. Ai* following ' ■ sords
H«4 phru^jLMi r i hall hr+vt* t4*^ following mLHiningi . ,
except k* t+H* L ' .xtL ' nt t4»t- imf laich word t+f phru ' - i O
» specifically qualified by ite contest:
f-l^ "i\dmini 'i trator" mean * ' . t4*e Adminir . trator
b( t+te Sa' i 'ingLi a«4 1 oan Div i ' - . ion.
fS) "Ai . r i ociiilion" moan;; a sasingn ttft4 loan
aof i ociation subject te tfee provi ' .iion ' j trf tl4&
Chapter.
(4} '(^immiiiiiion" moans th* Savings stpt4
Loan Commi ;. si(tn.
(4} "Immediate family" means a person's
opouso, father, mother, childr e n, brothers,
sisters »ft4 grandchildren: t4» father, mother,
brothers rt«4 sister ;, of such per -. on' '. spou '. e;
a«4 tht» spouse t4" » child, brother t*f- si '. ter
ef such per 'i on.
Unless othen\ise indicated, words and phrases
defined by (i.S. 54 B -4 shall ha\'e the same
meaning in this CHiapter.
Statutory: Authority G.S. 54B-55.
.0104 SLPERMSORV FEE
The annual supervisory fee for associations and
holding companies shall be collected in the
month of July. This fee shall be non-refundable.
unless aft application te- conseil k+ » tederal
charter »f w* application te merge ha* been ftkni
4:24 NORTH CAROLINA REGISTER March 15, 1990
1171
PROPOSED RULES
with Ae Savings a«4 loan Disdsion prior te- A»
beginning ef July. A refund »f tb« fee shall be
ift Ae yeaf aftor the ufToctivo tfete el- the convor
&je» te fodoral chart or »f the olToctive date »f the
morgor undor stat e ktwr
Statutory Authority G.S. 54B-55; 54B-57.
.0105 RKSIKICTIONS: I'AYIVIENT OF
DIViDKNDS A^D REPURCHASE OF
STOCK
(a^ Notwithstanding the provisions »f Para
graphs (44 afwi (*4 »f A+s Ruk * , a stock associ
ation jihall Be+ dt ' olar e e* pay any form ef
dii i idend »» its capital stock unless the associ
ation has the prior written approval ef the A4-
ministrator.
(a) (44 A stock association shall not declare or
pay a cash dividend on, or repurchase any of, its
capital stock if the effect thereof would be to re-
duce the net worth of the association to an
amount which is less than five poroont &f the as-
sociation's total outstanding wilhdravvabl e ae-
counts. -Pof the purpo i. cs . «4~ th+s Paragraph, "not
worth" moau j i capital slock plus additional paid
in capital, undisidod profits aftd general reserve
accounts fef unspecifi e d loss e s, the minimum
required by the federal regulatory authority.
(b) i^ Without the prior written approval of the
Administrator, a stock association which has
been in operation or converted from mutual form
for less than 4-0 five years shall not repurchase
any of its capital stock.
(c) (4) A stock association which has been in
operation or converted from mutual form for less
than 44 five years shall obtain the written ap-
proval of the Administrator before declaring or
paying a cash dividend on its capital stock in an
amount in excess of one-half of the greater of:
(1) the association's net income for the most
recent fiscal year end; or
(2) the average of the association's net income
after di\idcnds for the most recent fiscal
year end and not more than two of the
immediately preceding fiscal year ends, if
applicable.
(d) (e) For a period of three years following the
date of completion of a conversion from mutual
to stock form, no person shall, directly or indi-
rectly, offer to acquire or acquire the beneficial
ownership of more than ten percent of any class
of an equity security of the converted association
without the prior written approval of the Ad-
ministrator. Securities beneficially owed in \io-
lation of this Paragraph in excess of ten percent
shall not be counted as shares entitled to vote
and shall not be voted by any person or counted
as voting shares in connection with any matters
submitted to the stockholders for a vote. Unless
made applicable by the Administrator by prior
advice in writing, the restriction contained in this
Paragraph shall not apply to any offer or an-
nouncement of an offer which if consummated
would result in the acquisition by a person, to-
gether with all other acquisitions by that person
of the same class of securities during the preced-
ing 12-month period, of not more th;m one per-
cent of the class of securities. Nor shall this
Paragraph apply to:
( 1 ) any offer with a view toward pubUc resale
made exclusively to the association or its
underwriters or the selling group acting
on its behalf; or
(2) any offer to acquire or acquisition of ben-
eficial ownership of more than ten percent
of the common stock of an association by
a corporation whose ownership is or wiU
be substantially the same as the ownership
of the association, provided that the offer
or acquisition is made more than one year
following the date of completion of the
conversion.
Statutory Authority G.S. 54B-43: 54B-55.
SECTION .0200 - RULE-MAKING HEARINGS
.0201 I'EI niON FOR ADOPTION:
AMENDMENT OR REPEAL OF RULES
(a) Right to Petition. Any interested person
may petition the y\dministrator to promulgate,
amend, or repeal an administrative rule.
(b) Form of Petition. The petition shall be in
writing, signed by the petitioning party or parties
and must include the address of the petitioning
party. In addition, the petition shall contain the
following information:
(1) a draft of the proposed rule, amendment
or repeal or a summary thereof;
(2) the reason(s) for the proposal;
(3) the effect on existing rules or orders or
both;
(4) any data showing the probable effect of the
proposal on existing practices in the area
involved, including cost; and
(5) the names of those most likely to be af-
fected by the proposal with addresses if
reasonably known.
(c) Address for Petition. Petitions shall be
addressed to the Division at its mailing address.
(d) Disposition of Petition. Upon receipt of a
petition, the Administrator will make a study of
the facts stated in the petition and an\- additional
information he deems relevant. The Adminis-
trator's disposition of the petition will be made
1172
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
in one of the following forms within 30 days of
receipt of the petition:
(1) a written denial of the proposal setting
forth the reasons for such denial, or
(2) a written communication to the petitioner
indicating the Administrator's plan to ini-
tiate rulemaking procedures pursuant to
G.S. 150B-12.
Statutory Authority G.S. 548-55; I50B-I2.
.0202 NOTICE OF RULE-MAKING HEARINGS
Any person or agency desiring to be placed on
the mailing list for the Administrator's rule-
making notices may file such request by furnish-
ing a name and mailing address in writing to the
Division at its mailing address. The request must
state the subject areas within the authority of the
Administrator's office for which the notice is re-
quested. The Administrator may require rea-
sonable postage and stationery costs to be paid
by persons receiving such notices.
Statutory Authority G.S. 1508-12.
.0203 RL'LE-.MAKING HEARINGS: GENERAL
INFORMATION
The hearing officer shall have complete control
of the proceedings, including extensions of any
time requirements, order of presentations, time
allotments for presentations, direction of the flow
of the discussion and the management of the
hearing. Each person participating in the hearing
shall be given a fair opportunity to present views,
data and comments.
Statutory Authority G.S. 1508-12.
SECTION .0300 - DECLARATORY RULINGS
.0301 PETIIION FOR DECLARATORY
RULING
(a) Petitioner Must Possess Interest. The
petitioner must possess such an interest in the
question to be ruled on that the petitioner's need
to have such a ruling in order to comply with
statutory' requirements. Division rules, or Divi-
sion poUcy shall be apparent from the petition
and shall be fully explained therein.
(b) Form and Content of Petition. The peti-
tion shaU be typewritten and shall contain the
name and address of the petitioner, the specific
factual situation involved, the question or
questions sought to be answered, and the iden-
tification of the rules, statutes, or orders applica-
ble to the question presented.
(c) Written Brief May Be Submitted. The
petitioner may submit a written brief, but oral
argument shall not be allowed unless deemed
necessary by the Administrator.
(d) Mailing Address. All requests for
declaratory rulings shall be mailed to the Division
at its mailing address.
Statutory Authority G.S. 1508-17.
.0302 RESPONSE OF ADMINISTRATOR TO
PETITION
(a) Written Response. A written response to
the petition for a declaratory ruling, whether in
the form of a declaratory ruling or a refusal to
issue a declaratory ruling, shaU be signed by the
Administrator or his designated representative
within 60 days following the date on which the
petition was received by the Division.
(b) Refusal to Issue Declaratory Ruling. The
Administrator may refuse to issue ai declaratory
ruling if one of the following circumstances ex-
ists:
(1) The subject matter is one in which the
Administrator has no authority to issue a
binding decision;
(2) The situation is one in which the amount
of work that would be required by the
Administrator and staff to issue the
declaratory ruling would be the same as
or greater than the work required to
process the request through normal pro-
cedures or a contested case proceeding;
(3) The petition does not state with enough
specificity the factual situation involved,
or the question is presented in such a
manner that the Administrator cannot
determine what the question is, or that the
Administrator cannot respond with a spe-
cific ruling that will be binding on all
parties;
(4) The petitioner does not, in the opinion of
the Administrator, possess sufficient in-
terest in the question to be ruled on; or
(5) For any other reason the Administrator
finds the issuance of a declaratory' ruling
to be undesirable.
Statutory Authority G.S. 1508-17.
SECTION .0400 - ADMINISTR.ATIVE
HEARINGS
.0401 RIGHT TO HEARING
Whenever the Administrator acts in such a way
as to affect the rights, duties or privileges of a
specific identified party, the party may appeal for
a fmal decision by the Administrator in accord-
ance with Article 3A of G.S. 150B.
Statutory Authority G.S. 150B-3S.
4:24 NORTH CAROLINA REGISTER March 15, 1990
1173
PROPOSED RULES
.0402 INFORMAL SETTLEMENT
(a) Attendance at Settlement Conference. Be-
fore a hearing request can be acted upon, a per-
son must fu"st make an effort to resolve the
matter with the Division informally and must
attend and participate in any scheduled meetings
or conferences.
(b) Settlement Statement. A proposed settle-
ment, including a stipulated statement of facts,
shall be set forth in writing by the Division. If
the proposed settlement is agreed to by all parties
to the matter, it shall represent the fmal disposi-
tion of the matter and shall be signed by all par-
ties to the matter or their legal representatives.
If the proposed settlement is not agreed to and
signed by all parties, then the matter shall pro-
ceed as provided in this Section.
Statutory Authority G.S. 5S-9.
.0403 REQUEST FOR HEARING
(a) Form of Request. A request for an ad-
ministrative hearing must be in writing and must
contain the following information:
name and address of the person requesting
the hearing,
a concise statement of the action by the
Administrator that is being challenged,
a concise statement of the manner in
which the petitioner is aggrieved, and
a clear and specific demand for a public
hearing.
Address For Request. The request for
hearing shall be filed with the Division at its
mailing address.
(1)
(2)
(3)
(4)
(b)
Statutory Authority G.S. 5S-9; J50B-3S.
.0404 NOTICE OF HEARING
Notice of a public hearing shall be given in
writing to the appropriate parties in advance of
the hearing date as required by the law applicable
to the hearing being held.
Statutory Authority G.S. I50B-23.
.0405 INTERVENTION IN .\N
ADMINISIRATIVE HEARING
(a) Petition to Intervene. A petition to inter-
vene may be permitted if timely and if the peti-
tion meets the criteria set forth in G.S. lA-1,
Rule 24(b).
(b) Intervention Criteria. In addition, the Ad-
ministrator, in his discretion, may allow inter-
vention or limited intervention when:
(1) Sunilar rights will be affected;
(2) Intervention will not confuse issues;
(3) Issues are the same or similar to the issue
in question;
(4) Intervention is in the public interest; and
(5) Intervention will not prejudice the rights
of parties.
(c) Form of Petition. A petition to intervene
shall contain the name of the petitioner, the title
of the hearing, the date and time of the hearing,
if known, and the grounds for intervention. The
petition for intervention shall be addressed to all
parties affected thereby and to the Division at its
mailing address.
(d) Notice of Intervention. If the Administra-
tor allows intervention, notice of that decision
shall be issued promptly to all parties and to the
petitioner. Notification will include a statement
of any limitation of time, subject matter, evi-
dence, or other limitations imposed on the
intervenor. If the Administrator's decision is to
deny intervention, the petitioner wiU be notified
promptly.
Statutory Authority G.S. IA-1; I50B-3S.
.0406 DEPOSITIONS
The use of depositions may be allowed only
when attendance at a hearing would work a
hardship on a person otherwise available to be
subpoenaed as a witness, and such hardship is so
great as to be unreasonable in light of the testi-
mony that person may be expected to give. In
such a case, a deposition will be taken in ac-
cordance with the North Carolina Rules of Civil
Procedure. ^\11 necessary rulings as to whether a
deposition will be allowed or as to methods of
securing a deposition are within the power and
discretion of the hearing officer.
Statutory Authority G.S. lA-l: 1508-28.
.0407 SLBPOENAS
(a) I learing Officer May Issue Subpoena. Any
hearing officer may issue subpoenas in the name
of the Administrator.
(b) Request for Subpoena. Subpoenas requir-
ing the attendance of witnesses, or the production
of documents, evidence or things will be issued
promptly by a hearing officer after receipt of a
written request from a party to a contested case
for such subpoena.
Statuioty Authority G.S. I50B-3S: 150B-39.
.0408 SERVICE OFSLBl'OENAS
(a) Methods of Service. Subpoenas shall be
served as the officer issuing the subpoena shall
direct. Subpoenas may be directed to be served
by any of the following methods:
1174
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
(1) by an employee of the Division; or
(2) by the sheriff of the county in which the
person subpoenaed resides, when the
party requesting such subpoena pre-pays
the sheriiT's service fee.
(b) Form of Subpoena. Subpoenas will be is-
sued in duplicate with a "Return of Service" form
attached to each copy. The person serving the
subpoena shall fill out the "Return of Service"
form for each copy and promptly return one
copy of the subpoena, with the attached "Return
of Service" form completed.
Statutory Authority G.S. J50B-3S; J50B-39.
.0409 OB.IhXTlON TO A SLBl^OENA
(a) Form of Objection. Except as may be
otherwise stated in a particular subpoena, a party
or person receiving a subpoena from the Division
may object thereto by filing a written objection
to the subpoena with the Division at its mailing
address. An objection to a subpoena must in-
clude a concise but complete statement of rea-
sons why the subpoena should be revoked or
modified. These reasons may include any reason
in law for holding the subpoena invalid.
(b) Service of Objection. The objection shall
be served upon the Administrator and the party
who requested the subpoena. Service shall be in
accordance with the North Carolina Rules of
Civil Procedure.
(c) Response to Objection. The party re-
questing the subpoena may file a written re-
sponse to the objection. The response shall be
served in like manner as the objection.
(d) I learing on Subpoena. After receipt of the
objection and response thereto, the hearing offi-
cer may issue a notice to the party who requested
the subpoena and the party challenging the
subpoena, and may notify all other parties of a
hearing, to be scheduled as soon as practicable,
at which time e\'idence and testimony regarding
the objection and response may be presented.
Statutory Authority G.S. I50B-3S: 150B-40.
SLBCIIAPTKR 16B - SA\ INGS INSTITUTIONS
COMMISSION
.0001 OITTCERS
At the first meeting of each fiscal year, the
Sa\ingr . r«4 Loan Commission shall elect one of
its members to ser\'e as chainnan and one of its
members to serve as vice-chairman. The chair-
man shall designate a staff member of the Sas-ingo
aft4 loan Division to serve as secretary. If a
meeting of the Commission is called and the
chairman aft4 or vice-chairman cannot attend.
the members of the Commission may elect one
of their membership to preside over the meeting.
Statutory Authority G.S. 543-53; 54B-55.
.0002 MEETINGS
(a) Regular Meetings. The Savings aft4 Loan
Commission shall hold regular meetings in
Raleigh every second Thursday in the second
month of each quarter, wrib the moutingn being
hei4 m tfee montho &f February, May, Auguut
afi4 No' i ^ombor. By a majority vote of the
Commission, the date and location of a regular
meeting may be changed.
(b) Special Meetings. Special meetings of the
Commission may be called as needed by the
chairman, three members of the Commission, or
the Administrator, provided actual notice of each
meeting is given to every member of the Com-
mission prior to the date of the meeting.
(c) Quorum. A quorum shall consist of four
members of the Commission.
(d) Voting. The vote of a majority of those
members of the Commission present and voting
shall be sufficient to decide any matter before the
Commission, provided a quorum is present. A
member of the Commission shaO not vote on
any matter in which he has a personal or fman-
cial interest.
Statutory Authority G.S. 54B-53; 54B-55.
SUBCHAPTER I6C - API'LIC.VTIONS
SECTION .0100 - CHARTER APPLICATION
.0101 FOR.MS
(a) Application for a mutual association is ac-
complished througli the execution of Form .MC.
(b) Application for a stock association is ac-
complished through the execution of Form SC.
(c) Forms MC and SC incorporate all statutory
requirements and criteria and provide for the
submission of required information. These
forms can be obtained from and filed with the
Savings a«4 L-eaw Division, I^tOt Bwr M 37'XI5,
Ral e igli, North Carolina 2761 1. at its mailing
address.
Statutory Authority G.S. 54B-9; 54B-55.
SECTION .0200 - BRANCH OFFICE
APPLIC.VTION
.0201 FORM
Application for a branch office of » mutual as-
sociation Bf a stock an association is accom-
plished through the execution of Form AB.
Form AB incorporates all statutory requirements
4:24 NORTH CAROLINA REGISTER March 15, 1990
1175
PROPOSED RULES
and criteria and provides for the submission of
required information. The form can be obtained
from and filed with the Savings afi4 Loan Divi-
sion, -PtO. e^ M 37915, RalLMgh, N€K4fe
Carolina 376 1 1 . at its mailing address.
Slatutoiy Authority G.S. 54B-22: 54B-55.
SECTION .0300 - .APPLICATION TO CHANGE
LOCATION OF BRANCH OFFICE OR
PRINCIPAL OFFICE
.0304 TEMPORARY CLOSING OF OFFICE
The Administrator shall be notified if an office
is closed temporarily for any reason other than
observance of a holiday.
Statutory Authority G.S. 54B-55.
.0305 PLRCII.ASE OF BRANCH
No association shall purchase a branch office
without first obtaining the written approval of
the administration. The association shall furnish
such uiformation as to the purchase as the Ad-
ministrator may prescribe.
Statutory Authority G.S. 54B-22: 54B-55.
SECTION .0400 - REMOTE SERVICE UNITS
.0401 DEFINITIONS
As used in this Section, unless the context oth-
erwise requires, the term:
(1) "Generic data" means statistical informa-
tion which does not identify any indi\idual
account holder.
(3) "Personal security identifier" means any
word, number, or other security identifier
essential for an account holder to gain access
to an account through use of an unmaimed
remote service unit.
(3) "Remote service unit" means a customer
communications terminal, point-of-sale ter-
minal, automated teller machine, cash-dis-
pensing machine, automated or other direct
or or remote infonnation processing device
or machine, whether manned or unmanned,
through or by means of which funds or in-
formation relating to any financial service
or transaction rendered to the public is
stored and transmitted, instantaneously or
otherwise to or from an association terminal
or terminals controlled or used by or with
other parties.
(4^ "Rjmotc i. L ' P i ict ' Hfti* account" niLMnc i a
savingf i »f loan account tfert- ma>' t^ ae-
CL ' C i f . L ' d tlirouuli t»» &f a r e mote acrS ' icL' unit.
Statutory Authority G.S. 54B-77.
.0402 APPLICATION: GLIDELINES FOR
APPROVAL BY ADMINISTRATOR
(a) An association may apply to the Adminis-
trator for permission to establish or use remote
service units and participate with other parties in
remote service unit operations, on an unrestricted
geographic basis. An association may share a
remote service unit controlled by a third party
or an institution not subject to examination by
a State regulatory agency only if such tliird part
or institution has agreed in writing that the re-
mote service unit is subject to such examination
by the Administrator as he deems necessary.
(b) Application for a remote service unit is ac-
complished through the execution of I'orm RSU.
Form RSU incorporates all regulatory require-
ments and guidelines for the estabUshment of a
remote service unit and provides for the sub-
mission of required information. This form can
be obtained from and tiled with the Sa' . ingr . aft4
teaft Division, ¥. O. 8»* W 37015, Rali ' igh.
North Carolina 3761 1. at its mailing address.
(c) The Administrator shall consider the fol-
lowing guidelines when reviewing an application
to establish a remote service unit:
(1) The policies, financial condition, and op-
eration of the applicant afford no basis for
supervisory objection.
(3) The proposed remote service unit wdl be
established within six months of approval;
provided, for good cause shown, the Ad-
ministrator, upon written apphcation
from the association may grant the asso-
ciation a six-month extension within
which to establish the remote service unit.
Statutoty Authority G.S. 54B-77.
.0403 GENERAL POLICIES
fa) j\pplicability »f Rogulation &t Trano
CTtrTTTTTTTT rTTrtrtt? Lil H-ICI t tllf rTrTTTTTTTT til L.' ''tlT M\_^"l \,\J H l\-
Moctronic P«ft4 TraivifL-r A^ f+4 r.S.C. Wi^
et- L i oq.) aftti I ' loaulalion 1-^ t4 (+h* I'L ' dL'ral RL '-. L ' n e
ftwtf4(4a C.I ' .R. 305.3).
(a) (4=4 Prohibited uses. A remote service unit
shall not be used to open savings accounts or
establish loan accounts.
(b) fe) Service charges. An association may
impose service charges for remote service unit fi-
nancial services.
(c) (4) Bonding. Ait association shall take all
steps necessary to protect its interest in financial
services processed at each remote service unit,
including obtaining available fidelity, forgcn,-, and
other appropriate insurance.
1176
4:24 NORTH CAROLlN.i REGISTER March 15, 1990
PROPOSED RULES
(d) («^ Security. An association shall protect
electronic data against fraudulent alterations or
disclosure.
Statutory Authority G.S. 54B-77.
SECTION .0500 - INTERSTATE RECIPROCAL
ACQUISITIONS
.0501 FORM
Application for approval to acquire a North
Carolina association is accomplished through the
execution of Form AQ. The form can be ob-
tained from and must be filed with the Savings
aft4 ;-Brtft Division, Ur ©. U^ M 27015, Raloigh,
North Carolina 3761 1. at its mailing address.
Statutory Authority G.S. 54B-48.6: 54B-55.
.0503 FEES
(a) The acquisition application fee is the same
as for a savings and loan holding company ap-
plication.
(b) The administration fee for an association
acquired by a Southern region savings and loan
association or holding company shall be the same
as the supervisory fee for a North Carolina asso-
ciation of similar asset size.
(c) The Southern region savings and loan as-
sociation or holding company that has acquired
an association shaU pay the same super\isory fee
as a North CaroUna holding company.
(d) If comparable fees in the home state of the
parent association or holding compan\' are higher
than the applicable North Carolina fee, then the
higher fee shall be applicable.
Statutory Authority G.S. 54B-4S.6: 34B-55.
SUBCHAPTER 16D - OPERATION OF SAMNGS
ASSOCI.VnONS
SECTION .0100 - DIRECTORS: OFFICERS AND
EMPLOYEES
.0101 COMPOSITION OF BOARD OF
DIRECTORS
(a) The number of directors constituting the
initial board of directors shall be not less than
seven. Thereafter, the provisions of Chapter 55
of the General Statutes shaU govern the numer-
ical composition of boards of directors for both
stock and mutual associations. Other guidelines
for the composition of a board of directors are
as follows:
(1) No more than one-third of the bo;ird of
directors shaU be salaried officers or em-
ployees of the association, or of any sub-
sidiary or (except in the case of an
association having 80 percent or more of
any class of voting shares owned by a
holding company or controlling person)
any holding company or controlling per-
son affiliate thereof.
(2) No more than two directors shall be
members of the same immediate family.
(3) No two directors who are attorneys may
be members of the same law fum.
(4) No more than one-third of the board of
directors shall be directors, officers or
employees of a competing fmancial insti-
tution.
(5) The chief executive officer of the associ-
ation shall be a member of the board of
directors.
(^ t
u i i ' e p ooiaticm shall b» » comphanoo
tTTTTT I 11 1 U. wj LI 1 .' 1 1 ^TTT L.'l 1 1 1 1 ^> 1 V LI 1 1 CTT Kit." Ill ..I L CrTTTTTTtTT
me e ting »f th«» a ji-. Hciation h*44 after the e ff e cti' ie
date e4^ frhi* Rule.
(b) fe^ A director shall not vote on any matter
in which he has a personal or fmancial interest.
(c) fd^ \Vlien an association takes action result-
ing in the establishment of a new chief executive
officer or director, the association shall notify the
Administrator in writing of such change, and
shall provide the name of the new chief executive
officer or director, the effective date of the ap-
pointment, and a statement of the person's past
and current business and professional affiliations.
The name of any departing chief executive officer
or director shall also be provided.
Statutory Authority G.S. 54B-55.
.0102 PROHIBITED TRANSACTIONS
(REPEALED)
Statutor}! Authority G.S. 54B-55.
.0104 INSIDER LOAN LIMIT.VIIONS
(REPEALED)
Statutory Authority G.S. 54B-I54.
SECTION .0200 - PROXIES
.0202 FORM OF PRO.XY
(a) Every form of proxy solicited by an associ-
ation shall conform to the following require-
ments:
(1) The proxy shall be revocable at will, with
the pov\er to revoke not being condi-
tioned on any event or occurrence or
otherwise limited; however, a proxy may
be made irrevocable to the extent permit-
ted by the applicable provisions of G.S.
55-68 and only when the proxy clearly
indicates that it is to be irrevocable.
4:24 NORTH CAROLINA REGISTER March 15. 1990
1177
PROPOSED RULES
(2) The proxy shall be clearly labeled "Revo-
cable Proxy" in at least 18-point, boldface
type.
(3) The proxy shall not be part of any other
document or instrument. Provided,
however, that th» a carbex signature card
(a two-part form consisting of a signature
card and proxy card) si Ae Unit e d States
LoaguQ ei Sa' ^ ingo Asi i ociations is specif-
ically permitted. The account holder
must sign both the signature card and the
proxy card in order to validate them.
(b) The proxy may include provisions permit-
ting both permanent revocation and revocation
of the proxy as to any particular meeting or
meetings, and a provision that the proxy wUl re-
main valid until "cancelled by a writing delivered
to the secretary of the association".
Statutory Authority G.S. 54B-55; 54B-I05.
SECTION .0300 - RECORDS
.0301 GENER.VL POLICIES
(a) Records to be Kept at Principal Office.
Every association shall keep at the principal of-
fice correct and complete books of account and
minutes of the proceedings of members, share-
holders, directors and committees. Complete
records of all business transacted at the principal
office shall be maintained at the principal oflice.
Everything relating to the business of an associ-
ation shall be examined and investigated by the
Administrator on a regular and periodic basis.
Every association and service corporation thereof
shall be audited at least once in each calendar
year by independent auditors. The audit shall
be done on the basis of generaUy accepted ac-
counting principles, unless otherwise provided by
this Chapter. The association shall file with the
Administrator tvr» copit' - j one copy of the audit
report along with one copy of the auditor's
management letter and any other letters regarding
the audit within 9U days after the end of its fiscal
year, unless extended in writing by the Adminis- .
trator. The association shall also submit to the
Administrator a copy of the association's written
response to the auditor's management letter at
the time such response is provided to the appro-
priate federal regulator\' authority.
Statutoiy Authority G.S. 54B-2I: 54B-55.
SECTION .0400 - LO.\NS
.0403 RECORDS ^VITII RESPECT TO LO.VNS
(a) .Mortgage Loans. Each association shall
maintain records with respect to each loan on the
security of real estate \\hich shall include:
(1) An application signed by the borrower
or his agent, containing adequate infor-
mation which shall include the purpose
of the loan, the identity of the property
or properties securing the loan, and the
purchase price of the property paid by or
agreed to be paid by the applicant where
the purpose of the loan is for the purchase
of the real estate securing such loan;
(2) The credit abiUty of the applicant shall
be ascertained in the application or by a
credit report, a fmancial report or by oth-
ers at the request of the association;
(3) A written appraisal report conforming to
the written appraisal policy of the associ-
ation, signed and dated prior to the ap-
proval of the application;
(4) Evidence to show:
(A) proper approval of the loan and the
terms and conditions of such approval;
(B) a loan settlement statement, signed by
the borrower, showing the distribution of
the loan proceeds;
(C) the association's approved attorney's
title opinion or a valid title insurance pol-
icy from a title insurance company au-
thorized to do business in North Carolina;
(D) hazard insurance coverage;
(E) release or releases of any portion of the
collateral, with a revised appraisal of the
remaining security retained; and
(F) the loan agreement, inspection reports,
owner's and contractor's affidavits and
other necessary procedures on con-
struction loans, where applicable;
(5) All loan modifications, properly recorded
in the minutes;
(6) Record of insurance expirations unless a
master mortgagee insurance policy is held
in full force and effect;
(7) Tax records;
(8) A mortgage loan register to show;
(A) account number;
(B) borrower's name;
(C) date of deed of trust;
(D) appraisal;
(E) interest rate;
(E) monthly payment and date of first
payment;
(G) purpose of the loan and purchase price
if for purchase of property securing the
loan and the contract price if for purposes
of construction; and
(H) hypothecation, if any, designating hy-
pothecator, amount, and t}pe of pledge
collateral; aU to be incorporated in the
hypothecation agreement;
I17S
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
(9) Records on acquisition of mortgaged se-
curity to include:
(A) a detailed record of the acquisition,
whether through foreclosure or otherwise,
and a description of the property or pro-
perties including the name of the former
owner;
(B) maintenance of subsidiary ledger cards
accounts for each separate acquisition, to
record all items subject to capitalization
or to income and expense during the pe-
riod such property is owned by the asso-
ciation;
(C) designation of all fees, charges and
commissions and to whom such were
paid;
(D) a copy of the trustee's report relating
to foreclosure, when applicable;
(4-0) A !: . p e cLfio r e' ; .e n e ift aft amount riufflcient
to cov e r uncollijott ' d capitaliF.L'd mortgago
loan intorost a* proocribod ift Rul e .Q ' lQS
ef tfeis Subchapter;
(10) (-14) A review of 60 days or over delin-
quent mortgage loans by the association's
board of directors or executive committee
at least once a month and such review to
be recorded in the minutes of the board
of directors or executive conunittee meet-
ing; and
(1 1) (43) A "loans in process account" to
support the undisbursed portion of the
proceeds of each mortgage loan or unse-
cured construction loans.
(b) Withdrawable Account Loans. Each as-
sociation shall maintain records with respect to
each loan secured by withdrawable accounts
which shall include a withdrawable account loan
register. Such loan register or registers shall in-
clude:
(1) account number,
(2) borrower's name,
(3) date of loan,
(4) interest rate,
(5) payment schedule, and
(6) date of frrst payment.
(c) Other Loan Register. Each association
shall maintain adequate and appropriate records
with respect to all other tvpes of loans made by
the association which shall include a loan regis-
ter. Separate registers shall be maintained with
respect to consumer loans and with respect to
commercial loans. Such loan register or registers
shall include:
(1) account number,
(2) borrower's name,
(3) date of lo;m,
(4) interest rate,
(5) payment schedule.
(6) date of frrst payment, aft4
(7) purpose of loan, tf applicablo. and
(8) type of collateral, if secured.
Statutory Authority G.S. 54B-55.
.0404 ALTERNATIVE \IORTGAGE
INSTRUMENTS
(a) An association may use any alternative
mortgage instrument agreed upon by the associ-
ation and the borrower. The term "alternative
mortgage instrument" shall include any type of
mortgage instrument other thiin a conventional
mortgage instrument with a fixed interest rate
and fixed payments. An association is deemed
to have complied with this Rule if it complies
with similar requirements enforced by the federal
inr . uror »f acoounto. regulatory authority. Para-
graphs (b) and (c) of this Rule apply only to
credit transactions where the borrower is a na-
tural person and the intended use of the loan
proceeds is for personal, family, or household
purposes.
(b) An association using an alternative mort-
gage instrument shaU maintain in the mortgage
loan fde a certification signed by the borrower
indicating that the borrower has received the dis-
closure material specified in Paragraph (c) of this
Rule before closing the loan.
(c) Prior to closing, the borrower shaU be fur-
nished disclosure material which shall include:
(1) an explanation of the alternative mortgage
instrument; and
(2) an example of the operation of the alter-
native mortgage instrument.
(d) The borrower shall not be charged any
costs or fees in connection with regularly sched-
uled adjustments to the interest rate, the pay-
ment, the outstanding principal loan balance, or
the loan term.
Statutory Authority G.S. 548-55; 54B-I63.
.0405 UNSECURED LOANS LIMIT
The aggregate amount of unsecured loans out-
standing which may be made by an association
to any one borrower shall not exceed the loi . r i or
64 Ot3# percent »f ti«* acsociation's asset ji ef five
percent &f ite Het- worth; provided, tfert aft asso
ciiition may, ift afty esont. malc e Hf> t«- three
thousand dollars (S3, 000) » uu '. ecured loans t»
aft¥ »fte borro' i ver. amount established by the
appropriate federal regulatory authority.
Statutory Authority G.S. 54B-55: 54B-I5/.
.0406 ACCOUNTING FOR GAINS AND
LOSSES (REPEALED)
4:24 NORTH CAROLINA REGISTER March 15, 1990
1179
PROPOSED RULES
Statutory Authority G.S. 54B-55.
.0407 LOANS TO ONE BOKROWKR
(a} Upon a written determination by the Ad-
ministrator that an association is operating with
unsafe and unsound lending practices, the Ad-
ministrator may establish such limits on loans to
any one borrower that he deems appropriate to
protect the public. At no time shall the aggregate
amount of loans of any type outstanding, granted
by an association to any one borrower, exceed
the lesser of the amount established by G.S.
54B- 1 64 or bv the federal regulator^' authority.
fb^ 4-H>f puipor .e s ef applying t+w limitationn s«*t-
forth i» Paragraph fa^ »f (44* Rulo, wft¥ loan te-
a person e* entity tfett- i*7 »f upon the making »f
the locm VrtU b e com e , etpt obligor bh- the loan v4H-
be attributed r4*^ ter
(44 ncMuinuL'L' ' ef such obligor;
rttt pL ' r -. onLi, trusts, syndicutos, pailn e rships,
ftft4 corporations ef ' ■ vhich such obligor »
» nominee, » benoficiar. , a mombor, a
general partner, a limited partner ov . ning
aft int e r e st »f +4) percent t+f more (based
»» the value ef hi^ contribution), of a re-
cord »f beneficial stockholder owning 44
perc e nt ef more »f the capital stock;
if such obligor is a trust, s'l ndicato, part
^
Pi
W
ner '. hip. »f corporation, all- tnists, syndi
cat e s, partnerships ^ , nf^i corporation
' ■ vhich aftv b e n e l^'iar
»f
memb e r, general
I ^ VT T [ It I ~ CTTT IIUVI I. ^'l
partner, limited part
e4 444 p e rc e nt Bf more, Bf record ef bene
ficiiil stockhold e r owning teft percent »f
mor e of the capital stock, is alse- a benel'i
ciLii y. memb e r, general partner, limited
partner owning aft inter e st e4 -W perc e nt
ef mor e &f the capital stock »f such obli
notv i ith' i tanding the foregoing, loan '. t»
partn e rships i» which the service corpc^
ration sf the lending a -.'i ociation is a part
ftef w4H' ftot be aggjregated against the
sen ice coqioration unles '. the security f»f
efte h4 the loans , is alst+ secunty fe* aft-
olher loan tn- the serv ice coqioration. evf
te- a partnership »f ^vhich the servic e e€H^
poration is a partner, m which ease those
loans having common ;.e curil;i w4Hr be a§-
gregated agains.t the s ^ ervic e corporation;
prti' i ided. that the as ' iociation nfhi s e rvice
corporation maintain books aft4 records
ift a» ;idequate manner te- exidence th^
each partn e rship is financially independ
efttr without aft¥ commingling ftf funds.
Bf- di\ ersion ef funds from eae partnership
te- another.
(^ ft*f the purpos e s ef this Section the term
"total balanc e s ef aii outstanding loans" m e ans
the original amounts loaned by- aft association
T-^ I 1 * f ■"»«-><? ^^^^^^^lt^^-AT^'^l • t ^1 \ ■ 'i t-\ ,-■ f-\f ' i n / 1 ■ »^ i i-i j-n .-4 ^1 i i .-■. --i r\ ri
I '1 1_1L> U.I IT tTTmTTTTTTTTTT HU T (J.1 iVl_' J Ul ITT rTTTCTCTTT U Lll_' LIL IVf
unpaid, less repayments aft4 participating inter
ests &el4 aft4 e.xclusivo ef afty loan eft the security
ef such association's savings accounts e* feai es-
tate the title te- w - hich has boon conv e yed te a
bona 64e purchaser whe- assumes the loan.
Statutory Authority G.S. 54B-55; 54B-I64.
.0408 ACCOUNTING FOR UNCOLLECTIBLE
INCOME (REPEALED)
Statutory Authority G.S. 54B-55.
SECTION .0500 - WH HDRAVVABLE
ACCOUNTS
.0503 NONNEGOTIABLE ORDERS OF
WITHDRAWAL (REPEALED)
Statutory Authority G.S. 54B-55; 54B-I2S.
.0505 NON-INTEREST-BEARING
NEGOTIABLE ORDER OF
WnilDKAWAL ACCTS (REPEALED)
Statutory Authority G.S. 54B-55; 54B-I27.
SECTION .0600 - LIQUIDITY FUND
(REPEALED)
.0601 LIQUIDITY FUND REQUIREMENT
.0602 AMOUNT OF LIQUIDITY FUND
Statutory Authority G.S. 54B-55; 54B-2/0; 54B-
211.
SECTION .0800 - TRUST POWERS
.0806 AUDIT OF TRUST DEPARTMENT
At least once during each calendar year, the as-
sociation's trust department shall be audited by
independent auditors, ift a manner prescribed
by the Admini -. tiator. A copy of the report of
the audit shall be promptly filed with the Ad-
ministrator.
Statutory Authority G.S. 54B-77.
.0807 FUNDS .\\\ Al IINti IN\ FSIMEN 1 OR
DISIRIBl HON
(a) Funds held in a fiduciary' capacity by an
association awaiting investment or distribution
shall not be held uninvested or undistributed any
longer that is reasonable for the proper manage-
ment of the account.
11 SO
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
(b) Funds held in trust by an association, in-
cluding managing agency accounts, awaiting in-
vestment or distribution may, unless prohibited
by the instrument creating the trust, be deposited
in other departments of the association, provided
the association shall first set aside under control
of the trust department collateral security of a
kind and in an amount as specified in G.S.
36A-63(b) for funds held in trust by a bank, ex-
cept that no such collater;U shall be required to
the extent that such funds are insured by Ae
I V-^Jl. I HI L '11 Till i,ll CTTTCT I .\ 'HI I 1 1 1 ^1 U I T.1I ll.^J ^^^T.7 1 I ' U 1 U I i\J 1 1
ef » mutual depo^iit guaranty aj i sociution, et thoir
Guccasr . orr i . an agency of the I'nited States gov-
emment.
(c) /Vny funds held by an association as fiduci-
ary awaiting investment or distribution and de-
posited Ln other departments of the association
shall be made productive.
Statutoty Aiilhority G.S. 54B-77.
Statutory Authority G.S. 54B-I94.
.0002 INVKSTMENT LIMITATION
The aggrogato invootmont by »«• aiisooiation m
'. en'ico corporationc . shall Het- oxcood teft porcont
includes Investments in a scr\ace corporation in-
clude not only stock and other securities of a
ser\'ice corporation, such as notes, bonds and
debentures, but also any loans, secured or unse-
cured, to the service corporation. The teft pet^
Geftt- investment limitation established bv G.S.
54B-194 applies to the total investment that an
association can make in one or in any number
of service corporations, except an association
may make a secured loan to a state-wide multi-
owned service corporation without affecting its
ten percent of assets investment.
Statutorv Authority G.S. 54B-55: 54B-I94.
SECTION .0900 - INVESTMENTS
.0901 SECl RITIES
An association may invest in any security that
has been rated at least BAA or equivalent by a
nationally recognized rating senice. In no case
may investments in YiAA or equivalent securities
exceed in the aggregate twenty five percent of net
worth without the express written permission of
the Admuiistrator.
Statutoty Authority G.S. 548-55; 54 B- 1 93.
.0902 STOCK IN OTHER .ASSOCIATIONS
(a) No association shall invest in the stock of
another association without giving prior written
notice to the Administrator.
(b) No association shall invest in the aggregate
more than five percent of its net worth in the
stock of other associations without the prior
written approval of the Administrator.
Statutory Authority G.S. 54B-55; 54B-/93.
SL'HCIIAPI KR U)F - SERVICE CORPORATIONS
AND FINANCE SI USII)I,\RIES
.0001 PERMITTED ACTIVITIES
The service corporation of an association may
engage Ln those activities which are approved by
the federal insurur ef accounlo regulalon' au-
thority for scn."ice corporations owned solely by
federal savings w+4 lettft associations \\ hich have
principal offices in this State, and any investment
authorized for state-chartered savings ftfi4 kK»
associations and approved in advance in writing
by the Administrator.
.0004 S lOCK IN A SERVICE CORPORATION
(REPEALED)
Statutory Authority G.S. 54B-55; 54B-I94.
.0005 AMENDMENTS TO AR1 ICLES OF
INCORPORVriON OR KVLAVVS
(a) Prior to filing with the Secretary of State
of North Carolina, a ser\'ice corporation shall ft«4-
amend file with the Administrator copies of any
proposed amendment to its articles of incorpo-
ration. »f bylaws until Ae proposed amend
ments ha' < e been a|iprcn ed by tbe ;\dniini^ ' trator.
-ft* i\dministratnr shall be doL'mod to- have »f>-
proed awy such am e iulments to sv hich be bft*
Het- objected within :34 days alter the date »»
>vliich tbe amendments afe filed. The Adminis-
trator must gi\e his appro\^al to tjic fonn and
content of such proposed amendment.
(b) Before the livlaws or any amendments to
the bylaws of a senice corporation can become
effective, a certified cop\" ot' the b\ laws or
amendments shall he filed with and approved by
the .Vdministrator. In the e\ ent of the failure of
the Administrator to act upon the b\iaws or
amendment within 25 davs ot receipt, the bvlaws
or amendment shall be deemed approved.
Statutoiy Authority G.S. 54B-55: 54B-I94.
SLBCII.M'IER 16II - SI PERMSORV ACHONS
.0001 DEFINITIONS
As used in this Subchapter, unless the context
othenyise requires, the teim:
(I) "Association" means all sa' i ings t+H4 loan
associations convertinsi. mersing or consol-
4:24 NORTH CAROLINA REGISTER March 15, 1990
llSl
PROPOSED RULES
idating pursuant to G.S. 54B-44 and this
Subchapter.
(2) "Consolidation" means a supervisory con-
solidation pursuant to G.S. 54B-44 and this
Subchapter.
(3) "Merger" means a supervisory merger pur-
suant to G.S. 54B-44 and this Subchapter.
(4) "Plan of conversion" means a detailed
outUne of the terms, conditions and proce-
dure of the short form conversion of an as-
sociation from mutual to stock form of
ownership.
(5) "Plan of merger" or "plan of
consolidation" means a detailed outline of
the terms, conditions and procedure of
combining one association, by merger or
consolidation, with another association.
(6) "Short form conversion" means a supervi-
sory conversion of an association from mu-
tual to stock form of ownership, pursuant
to G.S. 54B-44 and this Subchapter.
(7) "Combmation merger and conversion"
mean a supervisory conversion of an associ-
ation from mutual to stock form of owner-
ship combined with a supervisory merger,
pursuant to G.S. 54B-44 and this Subchap-
ter.
(8) "Plan of combination merger and conver-
sion" means a detailed outline of the terms,
conditions and procedures of the short fonn
conversion of an association from mutual to
stock form of ownership and combining the
association, by merger, with another associ-
ation.
Statutory Authority G.S. S4B-44.
.0007 t.iQi in.vnoN account
The Administrator may require that a plan of
conversion, merger, consolidation or any other
action provide for a liquidation account for the
benefit of the withdrawable account holders of a
converting mutual association or a mutual asso- .
elation which will not be the surviving associ-
ation pursuant to a merger or consolidation or
any either action, 4-h** L" . tabli '. hmL ' iit (-4' - . . uch li-
quidution account t(«4 t+H^ nght ' j b4 v . ithdrawablo
iiccdunt hold e r ' j pur -. uant thoroto, t ihuli be a* s«4
i^>f^ wt ■R*4t» .03(15 t4" Subchapt e r G f4" t44^
ClKL[^tor, vr+A- ^ . uch allc ' idliona wtr tht* Admini ' j
tratcir i . hall dc ' cm appropnatu.
Stalutoiy .iuthority G.S. 54B-44.
SlBCll.VI'n R 161 - .ACQl ISI I ION OK
COMROL
SFX HON .0700 - GENER.VL
.0701 GENERAL (REPEALED)
Statutory Authority G.S. 54B-55; 54B-26I: 54B-
262.
.0702 DEFINITIONS AND OTHER TERMS
(a^ As used in this Subchapter, unless the con-
text otherwise requires, the term:
( 1) "Acquisition" means a transaction in which
a person or savings and loan holding com-
pany acquires control of a stock association
by means of an exchange of its capital stock
for the capital stock of the stock association,
or by means of a purchase of the capital
stock of the stock association.
(2) "Applicant" means a person or savings and
loan holding company which has fded with
the Administrator any appUcation under this
Subchapter.
(3) "Control" means the power, directly or in-
directly, to direct the management or poli-
cies of an association or to vote 25 percent
or more of any class of voting securities for
an association.
(4) "Person" means an individual or group of
individuals acting in concert, a corporation,
tmst, joint venture, pool, syndicate, sole
proprietorship, unincorporated organization,
or any other form of entity not specifically
listed in this Subdi\ision.
(5) "Plan of Conversion" means a plan duly
adopted m accordance \^ ilh the requirements
of Cj.S. 54B-261 and this Subchapter that,
to the satisfaction of the Administrator, sets
out all relevant terms and ctmditions per-
taining to a mutual asscKJaticMi's reorganiza-
tion of its ownership to provide for
ownership bv a savings and loan holding
company.
(6) (-S.). "Plan of Reorganization" means a plan
duly adopted in accordance with the re-
quirements of G.S. 54B-261 and this Sub-
chapter that, to the satisfaction of the
Administrator, sets out all relevant terms
and conditions pertaining to a stock associ-
ation's reorganization of its ov\nership to
provide for ownersliip h\ a savings and loan
holding company.
(7) (-6^ "Registrant" means ;tn\ sa\ ings and loan
holding company which has filed a registra-
tion stateinent with the .Xdministrator under
this Subchapter.
(8) f?^ "Savings and Loan I loiding Company"
means any company which directly or indi-
rectly controls an association ov controls any
other company which is a savings and loan
holding company.
1182
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
\\Jt LTIT/Vn I^TTTTTT^TmrTTTTT^ rTTCTTTTrT HI It (
Bf compitny own e d by^ holders »f capital
stock a«4 organis e d und e r Ae pros'isions »f
Chaptor -^-tft frf t4*e North Carolina Goncral
Statut e s fof y»» primaP i purpo ' it? »f pro
moting thrift i*ft4 homo financing.
(9) "Tax Free Exchange" means an exchange
of stock which would result in no tax con-
sequences to the savings and loan holding
company, the stock association and its
stockholders under state or federal law.
(fe} l.'nlur . o tlw context othorv i ii i u roquiros,
terms dufmud m Chapter ^44^ trf Ae Noith Ga-
rolina General Statutes rtftd thi* Chapter, ' ■ ' ■■ hen
used m t4w* Subchapter, shall hav e *4+e meanings
gisen m such definitions, te- t4+t» extent s . uch defi
niticms we fte4- incon ^i istent w i th (-he definitions
contained m Ats Rule.
Statutory Authority G.S. 54B-55: 548-26/; 54B-
262.
.0703 STAND.\RDS FOR AI'I'KOV.M. OF
ACQUISITION: DLl IKS AM) COMHCT
(a) When it- Vs proposed tlittt »«• applicant shall
control a stock association, Ae Administrator
shall talre iftte- cons . ideraticm factors additional to
those eniunerated ift Rul e .070 1 e+ t-hts Sub
chapter. An association may be controlled by a
person or a savings and loan holding company.
The Administrator shall determine that the per-
son or savings and loan holding company is
qualified by character, e.\pcnence. and financial
rcsponsibilit\' to control the association in a legal
and responsible manner. The Admimstrator
shall consider the applicant's financial and man-
agerial resources, and the organizational stmcture
and future prospects and plans of both the ap-
plicant and the stock association. 'I'he Adminis-
trator will consider whether the business and
activities of the applicant, or its officers and di-
rectors, or any other person controlling, con-
trolled by, or associated with the applicant by
having a common controller, would create a
material deterioration of confidence in the safety,
soundness, and financial integrity of the stock
as.sociation proposed to be controlled. When
reference is made to tlic word "control" in this
Rule, the word "control" has the meaning given
in Rule .0702 of this Subchapter, and addi-
tionally shall ha\e the meaning given b)' any
other law or regulation under which the applicant
is required to report and register as a holding
company, parent corporation, or other similar
entity.
(b) An applicant shall be sohent, and shall
have a debt-to-equity ratio which compares fa-
vorably with the ratios of other persons in the
same line of business.
(c) The approval of an application to acquire
control of a stock an association shall in no way
diminish the authority of the Administrator to
regulate the activities of the subject controlled
association. Controlled as . sociations shaU ftet-
pay dividends without the prior writt e n approval
&f the i\dministrator, as required by lawr Con
trolled associations w^ll- continue fr» meet statu
kwy reserve a«4 fh4 worth requir e m e nts, aft4 w4tt
continue to meet the requirements ef the agency
insuring the accounts »f ite d e positors.
(d) A savings aft4 loan holding comptmy must
exercise good faith ift it* relationships aft4 trans
actions with the controlled a!iS(iciation. A con
trolled association -. hall ftot- enter irte contracts i ,
agreements, l e as e s, e* oth e r busin e ss arrange
m e nts, wh e ther formal ef informal, with it*
holding company «w am- other person controlling
©f controlled by tbe holding company, unless the
terms afe few wni reasonabl e to the association.
A controlled association shall not lend to, or in-
vest in, its holding company or its affiliates,
without the prior written approval of the Ad-
ministrator.
Statutory Authoritv G.S. 54B-4.1- 54B-55; 54B-
261; 54B-262.
.0704 INVESTMENT ACTIVriTES OF
IIOI DINC COMPANIES
A savings and loan holding company may invest
only in the stock of one or more stock associ-
ations, deposits in financial institutions the prin-
cipal offices of which are located in North
Carolina, investments permitted by G.S. 54B-181
through -184, and -187 through -190, and such
other in\estments approved in ad\ance in writing
by the Administrator. In no event shall a savings
and loan holding company make any investment
not specified by this Section or not permitted for
an association under the supervision of the Ad-
ministrator.
Statutory Authority G.S. 54B-55: 54B-26I; 54B-
262.
SKCnON .0800 - ACQ! ISniONS
.0801 PRIOR W Rin EN APPRO\ AL
REQl IREI) FOR A( Ql LSI IIONS
(a) A person or savings and loan holding com-
pany shall not acquire control of any stock asso-
ciation without having filed with the
Administrator an Acquisition Application as
prescribed by the Administrator, and without the
written approval of the Administrator after con-
4:24 NORTH CAROLIN.i REGISTER March 15, 1990
II S3
PROPOSED RULES
sideration of the application and any amend-
ments thereto.
(b) In addition to the filing of the Acquisition
Application, the applicant shall file any other in-
formation requested by the Administrator, in-
cluding copies of any filings, documents or
reports mentioned in Rule .1 105 of this Sub-
chapter.
Statutory Authority G.S 548-55; 54B-26I; 54B-
262.
.0802 APPLICATION FEES: FILINGS
j\ny An Acquisition Application proocribod h^
1 1 IV I^TTTTTTTTTTrTTTTTTT^T TTTTtrCT^ 1 1 II J V,TTJ t,'T^ I III [.'TV r CTTTT 1 1 1 tt V
be obtained from the Sus'inuti afni I oun Di\isit)n
iiest Qffit?t» ttwt M 279l5, ^ Rak ' igh. >r€ 27611.
at its mailing address. Applications wiii shall be
accompanied by an apphcation fee in the amount
prescribed by the fee schedule, adopted by t4+t»
i\dmini ;. lrator, rt«4 appro' . od by t4te S using - ' . »fi4
I oan ConimiL i oion. Such fee will be paid by
check and is non-refundable. Afty filings re-
c]uirod undor t44^ Subchuptijr eftft i4se- be made
\\\\\\ tW Saving '. i*ft4 1 oan Divi ' iion at- t+k» »tl-
dronr . gi^ i on m t4«i Pvulo. Filingr . , applicationr . ,
©f othor cominunicationi i ? . hall be dijL ' niL'd 6ie4
' . ' ■ hen rocoi' . od »1- t+te uddrei . ^ . i« ^fe Rul e .
Statuton^ Authority G'.S 54D-55; 543-57; 54B-
261: 54B-262.
.0803 CONFIDENTIAL INFORM.VTION
Should an applicant desire to submit any infor-
mation it deems to be of a confidential nature
regarding the answer to any item or a part of an
exhibit included in an\ application for fding un-
der this Subchapter, such infomiation pertaining
to such item or exhibit shall be separatel)' bound
and labeled "conlidcntial", and a statement shall
be submitted therewith briefly setting forth the
grounds on which such information should be
treated as confidential. Only general reference
thereto need be made in that portion of the ap-
plication wliich the applicant deems not to be
confidential. Applications for filings under tliis
Subchapter shall be made a\ailable for inspection
by the public, except for portions vyhich are
bound and labeled "confidential" and which the
Administrator determines to withhold from pub-
lic availability because of their confidential nature
fw4 i.'?a-L'pt frt+ iifiilion -. ' . vhich ' . vould. tf Hw4e
pub he. ha' i 'e (-he e ffect ef prematurely commenc
iftg a procei i fl ' . vhich. by i i tut e e* federal ktw m-
regulation, commence ', upcm i4^ public di i; clo
r . ure. -f-be .Xdinini '. trator '. hviU (+h+ permit public
inspection et copying nf »«y matenal t4wt- hjt m-
would ber doomed confidential under the pro-
visions of G.S. 54B-63.
Statutory Authority G.S 54B-55; 54B-63; 54 B-
261; 54B-262.
SECTION .0900 - REORGANIZING STOCK
ASSOCIATION INIO HOLDING COMPANY
.0901 REQUIRED ACQUISITION
APPLICVTION
WHion it is propof . i ' d A^ A stock association
shall may be controlled by a savings and loan
holding company by means of a plan of reor-
ganization, the savings aft4 loan holding com
pany shall fi4e This may be accomplished by
filing with the Administrator one manually
signed and tw^ one conformed copi e s copy of an
Accjuisition Apphcation. IIC. For the purpo.ses
of filing the application, the applicant shall be
considered a holding company, even thouglr it
may not yet control a stock association.
Statutory Authority G.S 54B-55; 54B-26I; 54B-
262.
.0902 ACQUISITION PROCEDURE
4-be iVdministrator shall Het appro\e rtfty en^
quiL . ilion unless tbe plan &f reoiganLuition shall
prtnide tfett- t^ resulting o' . ' . nership shall be
sested m a > . oilh Carolina corpt^ration. i*H-
stockholders ef t4*e stock association shall haso
tbe riglit te- e.'vchange shares, the e.xchiurge e4^
stock shall He4- be subject te- state Bf federal m-
come taxation, stockholders h*+4- ' . ' i ishing to- e^c-
chango shares shall be entitled te dissent e rs'
ri gills a*^ pro' . id e d under G.S. 55 113, rt«4 the
plan ef r e oigani/.ation i* fef ctH4 e(.[uitable k> att
stockholders.
(a) I pou determining that an .Acquisition Ap-
plication IS properh executed and is not mate-
nallv incomplete, the Administrator shall
consider the application filed. If the Plan of
Reorganization is n(it aiiprcned. the .Administra-
tor shall notilX' the ai'iplicant of such, and stale
the reasons for its disapprti\al. 1 he .Administra-
tor may include ad\ice [o the applicant as to
what may be required by \\a\' of amendment or
other requirement to cause appro\'al of the Plan
of l^eorLianization.
(b) If the .Administrator appro\es the Plan of
Reorganization, the applicant shall be notified.
I hereafter, a regular or special meeting of the
stockholders of the subject association shall be
called after ad\ance written notice to the stock-
holders of not less than 20 da\ s specilNing the
time, place, and purpose for calling of the meet-
ing. Notice shall be pubUshed in one or more
newspapers of general circulation in the county
IIS4
4:24 NORTH CAROLINA REGISTER Mmch 15, 1990
PROPOSED RULES
or counties where the association has its principal
office and branch otrice(s). The applicant shall
file publisher's affidavits with the Administrator
to confirm the publication of notice.
(c) The results of the stockholder's meeting
shall be confirmed to the Administrator by filing
attested minutes of the meeting. If the stock-
holders approve reorganization of ownership of
the association to provide for ownership by a
sa\ings and loan holding compan\', the Admin-
istrator shall enter his final order approving the
reorganization.
(d) 1 he Administrator may waive or alter, for
good cause, any requirements set forth in this
Rule.
Statutory Authority G.S 54B-55; 54B-26I: 54B-
262.
.0903 INVKSIMEM ACHVHIES
(RKI'E.ALKD)
.0904 NOTICK OF HI. INC: HEARINGS
(REPEALED)
Statutory Authority G.S 54B-54: 54B-55: 54B-
261: 54B-262.
SECTION .1000 - ACQUISITIONS OF STOCK
ASSOCI.VriONS
.1001 REQl IRED ACQUISITION
AI'PLIC.VnONS
(t*) A person seeking to acquire control of any
stock association shall file with the Administrator
one manually signed and Hve- one conformed
copiuti copy of an Acquisition Application. GPr
(4*^ -tft addition t& tiw filing ef 4h* Acqui i. ition
iVppliccition ir-V^ t+» applicant ■. hail f+k» copio!' i »f
aftv filinui i , document ', h* r e port ;, mc ' iitioned m
fr^ . 1 \i)5 trf tte Subchapter.
Statutoiy Authority G.S. 54D-55.
.1003 APPROVAL OF ACQUISITION
(a) Upon determining that an Acquisition Ap-
plication CP is properly executed and is not ma-
terially incomplete, the Administrator wiy shall
consider its approval. If the application is not
approved, the Administrator will notify the ap-
plicant of such, and state the reasons for its dis-
approval. The Administrator may include advice
to the applicant as to what may be required by
way of amendment or other requirement, to
cause appro\'al of the application.
(b) If the Administrator appro\e5 the applica-
tion, the applicant shall be notified. Such notice
shall include an\- requirements or stipulations the
Administrator may make as conditions of ap-
pro\'al.
(c) The Administrator may waive or alter, for
good cause, any requirements set forth in this
Rule.
(4^ I'uniuant t» Ae requir e ments ef G.S.
5Mi 5.1, tlw commi j. r . io ft FH»y review, approve,
disapprove, »f modify awy action taken %■ frt*»
iXdmini '. triitor pursuant te- tfeis Subchapt e r.
(#) 44m» fiftrii decision »f the commission may
b» appealed ift aooordanoo with Article 4 ef
Chapter 1501? of tb» North Carolina Gen e ral
Statut e s.
Statutory Authority G.S. 54B-54; 54B-55; 54 B-
261; 54B-262.
SECTION .1 100 - REGISTR.M ION:
SUPERMSION: REPORIS: FILINGS: BOOKS
AND RECORDS
.1101 REGISTRATION
(a) Not later than 10 business days after be-
coming a savings and loan holding company,
each savings and loan holding company shaU re-
^ster with the Administrator by filing a Regis-
tration Statement. R-Sr filings aft4 other
communications shiill be consider e d filed vshen
received bv (4*e Division.
fbf I'pon receipt »f a regi ' .tration statem e nt,
t+H» Adminii . trator w+H- assign fr» the registrant »
holding company numb e r. Such number sh(dl
be referred to- m the regi 'i trant's subsequent
communications whh the iXdministrator.
(b) fe) 1 he Administrator may at any time,
upon his own motion or otherwise, release a
holding company from registration, if the Ad-
ministrator determines that such company or
person no longer controls a stock association.
Statutory Authority G.S. 54B-55: 54B-26I: 54B-
262.
.1102 SUPERVISION
(a) Savings a«4 loan holding companies shall
he sui'> e i'vised hv th<* Administrator. ?4=» Ad-
ministrator shall exercis e c+W povver '. rt«4 re '. pon
sibilitie '. with le '. pect to supervi 'i ion. regulation
rtrt4 exiunination t4" such companies a^ the A4-
minislrcitor exercises with ro '. pect to as ti ociations,
a* detailed ift- Cliiipter -^-l-B- h+ the North Carolina
General Statutes a«4 th« Chapter. Officers, di-
rectors, and employees of savings and loan hold-
ing companies have the same duties and
responsibilities, express or implied, as officers,
directors, and employees of associations.
(b) f ach registrant shall be subject to such ex-
aminations as the Administrator may prescribe.
The cost of such examinations shall he assessed
against and paid by such registrant.
4:24 NORTH CAROLINA REGISTER March 15, 1990
II S5
PROPOSED RULES
Statutory Authority G.S. S4B-55; 54B-57; 54B-
261: 54B-262.
.1104 FILING AND APPROVAL:
AMENDMENTS TO ARTICLES AND
BYLAWS
(a) Prior to any filing with the Secretary of State
of the State of North Carolina, a holding com-
pany will file with the Administrator copies of
any proposed amendment to its articles of incor-
poration. &f bylawT i . The Administrator must
give his approval to the content and fonn of such
proposed amendments. t>trt- m Ae ovont »f A«
failur e »f t4*« Admini ;. trator te- aet- upon A# filing
witliin 34 duyf i e+' r e c e ipt »f rir tht» amend e d arti-
ek* &( incoiporation »f bylawr. vAU l*e approved.
(b) Before any amendments to the bylaws of a
savinus and loan holdina company can become
effective, a certified copy of such amendments
shall be fded with and approved hv the Admin-
istrator. In the event of the failure of the Ad-
ministrator to act upon the amendment within
25 days of receipt, the bvlaws shall be deemed
approved.
Statutory Authority G.S. 54B-55; 54B-26I: 54B-
262.
.1105 REPORTS
(a) Each registrant shall file simultaneously
with the Administrator copies of any filings, do-
cuments, statements or reports required to be
fded with the F e d e ral Sasings a«4 I oan Inmr
anco Coqioration purrauint t©- Section 44^ ©f tl**
National Mou l ding At* »f rogulation i j proinul
gated thLML ' under aft4 Ae Socurition aft4 H \chango
Commiooion pur -. uant k> \^ Securitie ' j I'Kchango
Aet- &f -^^4 f44 U.S.C. Section ^^9^ e^ %^^ aft4
tbe Securities b.xchango A^-t- »f 4^i^ (^ L.S.C.
Section Tht et^ r . eq.) e+ regulation - .i promulgated
thereunder. Such material v414 be ft}e4 under
cover ef » General Fonn IIC \. appropriate
federal regulator.' authority.
(b) Each registrant shall tile with the Adminis-
trator such reports or other fdings as the Ad-
ministrator may prescribe, to be made under oath
or otherwise, and to be in such fonn and for such
periods as the Administrator may prescribe.
Each such report of filing shall contain such in-
formation concerning the operations of the sav-
ings and loan holding company, and any related
persons, as the Administrator may require.
Statutory Authority G.S. 54B-55; 54B-26I: 54B-
262.
.1106 BOOKS AND RECORDS
In addition to general corporate records main-
tained in the ordinary course of business as re-
quired by Section 16D .0300 of this Chapter,
each registrant shall maintain such books and
records in such form as may be prescribed by the
Administrator. The books and records of a
controlled association or its holding company
shaO not be removed from this State without the
prior written approval of the Administrator.
Statutory Authority G.S. 54B-55; 54B-26I; 54B-
262.
SECTION .1200 - CONVERSION OF MLTLIAL
ASSOCIATION INTO HOLDING COMPANY
.1201 REQLIRED ACQLTSITION
APPLICATION
When it is proposed that a mutual association
shall convert to a savings and loan holding com-
pany by means of a plan of conversion, the mu-
tual association shall file with the Administrator
one manually signed and one conformed copy
of an Acquisition Application.
Statutory Authority G.S. 54B-55; 54B-26J; 54B-
262.
.1202 CONVERSION PROCEDURE
(a) Upon determining that an Acquisition Ap-
plication is properly executed and is not mate-
rially incomplete, the Administrator shall
consider the application fded. If the Plan of
Conversion is not approved, the Administrator
shall notify the applicant of such, and state the
reasons for its disapproval. 'The Administrator
may include advice to the applicant as to what
may be required by way of amendment or other
requirement, to cause approval of the Plan of
Conversion.
(b) If the Administrator approves the Plan of
Conversion, the apphcant shall be notified.
Thereafter, a regular or special meeting of the
members of the subject association shall be called
after advance written notice to the members of
not less than 20 days specifying the time, place
and purjriose for calling of the meeting. Notice
shall be published in one or more newspapers of
general circulation in the county or counties
where the association has its principal office and
branch office(s). The applicant shaU fde pub-
lisher's affidavits with the Administrator to con-
firm publication of notice.
(c) The results of the member's meeting shall
be confirmed to the Administrator by filing at-
tested minutes of the mcetmg. If the members
approve conversion of the association to a mu-
tual holdmg company, the Administrator shall
enter his final order approving the conversion.
//<V6
4:24 NORTH CAROLINA REGISTER March 15, I99U
PROPOSED RULES
(d) The Administrator may waive or alter, for
good cause, any requirements set forth in this
Rule.
(c) The Administrator may waive or alter, for
good cause, any requirements set forth in this
Rule.
Statutory Authority G.S. 548-54; 54B-55; 54B-
261; 54B-262.
.1203 PLAN OF CONVERSION
REQLIRF.MKNTS
(a) The plan of conversion to a mutual holding
company shaU require the chartering of a stock
subsidiary. At least 51 percent of the stock of
this subsidiary shall be owned by the mutual
holding company.
(b) Share of the stock subsidiary may be issued
to the holding company only after sufTicient as-
sets to match transferred deposit liabilities are
transferred by the holding company to the stock
subsidiary and only after written corLfirmation of
continuation of insurance of accounts for the
stock subsidiary is received from the federal in-
surer of accounts.
(c) Upon completion of the conversion, the
mutual association shall become a mutual hold-
ing company and shall cease to be an association
or depository institution of any type.
Statutory Authority G.S. 548-55; 548-262.
SECTION .1300 - MOLDING COiVIPANY
ACQLISITIONS
.1301 REQl IRED ACQUISITION
APPLICATION
A person seeking to acquire control of any
holding company shall file with the Administra-
tor on manually signed and one conformed copy
of an Acquisition Application.
Statutory Authority G.S. 548-55; 548-262.
.1302 ACQUISITION PROCEDURE
(a) Upon determining that an Acquisition Ap-
plication is properly executed and is not mate-
rially incomplete, the Administrator shall
consider the application filed. If the application
is not approved, the Administrator shall notify
the applicant of such, and state the reasons for its
disapproval. The Administrator may include
advice to the applicant as to what may be re-
quired by way of amendment or other require-
ment to cause approval of the application.
(b) If the Administrator appro\es the applica-
tion, the applicant shall be notified. Such notice
shall include any requirements or stipulations the
Administrator may make as conditions of ap-
proval.
Statutory Authority G.S. 548-55; 548-262.
SUBCHAPTER I6.I - MERGER OF STATE AND
FEDERAL ASSOCIATIONS
.0001 MERGER OF A STATE ASSOCIATION
INTO A FEDERAL ASSOCIATION
The procedure to effect a merger where a state
association is merged into a federal association
shall be as follows:
(1) The state association or associations shaU
comply with subsections (1), (2), (3) and (4)
of G.S. 54B-35 relative to the merger agree-
ment, the special meeting of members or
stockholders to consider the merger agree-
ment, the notice requirements of the special
meeting, the requisite vote for member or
stockholder approval, and the proper filings
with the Administrator of the results of the
special meeting. The notice as required by
G.S. 54B-35(3) in addition to specifying the
time, place and purpose for the special
meeting shall also state that if the merger is
appro\'ed by the members or stockholders
and the proper regulatory authorities then
the surviving association will be a federally
chartered association subject to federal law
and h«* niloo rtH4 rogulationi i »f Ae b e deral
I lomo Loan Danlc Board, regulation.
(2) The state association or associations in-
volved shall also comply with any applicable
provisions of federal law and tlw ruloo i*H4
rL'gukitiono »f (4*e FudL'ral Hom e Loan Banlc
Board regulation regarding mergers.
(3) The federal association or associations in-
volved shall comply with the provisions of
federal law and t4te ruloo ftft4 rL ' gulations »f
tlw Fc'dural Home * Loiin Bank Board reizu-
lation regarding mergers.
Statutory Authority G.S. 54B-39.
.0002 MERGER OF A FEDERAL .\SSOCIATION
INTO A STA IE .\SSOCL\TION
The procedure to effect a merger when a federal
association is merging into a state association
shall be as follows:
(1) The federal association or associations in-
volved shall comply with the provisions of
federal law and 4» lailoi . rtft4 regulation ' : , ef
^¥& FodL ' ral I lumLi Loan Bank Board regu-
lation regarding mergers. I'ro' . idc ' d, how
ever, ttet- whero a ft ' d e ial a ' j i , ' Ociation »
mL ' rging Htte a ' jtat e ac . L . ociation t4w aceountL" .
»f winch a«* Het- inL p ured hf tlw Federal
4:24 NORTH CAROLINA REGISTER March 15, 1990
1187
PROPOSED RULES
Sa' i ^ingG a«4 Loan Incuranco Corporation,
Subparagraph f^ &f this Rule r . hall apply.
(2) The state association or associations in-
volved shaU comply with the provisions of
G.S. 54B-35 for the merger of state associ-
ations.
f3^ Wh e r e a federal association is m e rging iftte
ar stat e association whos e accounts afe fw^
insured hf ti»e F e d e ral Savings aft4 Ijoan
Insurance Corporation, ti*e fodoral associ
at ion »f associations invohud shall comply
with ikvd provisions &f state afi4 federal few
fof conversion ef federal savings afni loaft
charters te stat e savings afi4 loan charters
aft4 fop termination »f Federal Savings aft4
Loan Insurance Corporation insurance. AU
associations involved shall comply with th«
provisions e4^ G.S. 5 IB 35. ^fh« sharehold
ef* ef the federal association fnay consider
the charter con' i ersion, t4*e termination »f
insurance aft4 the merger agreement at a
singl e special shar e hold e rs meeting.
Statutory Authority G.S. 54B-39.
TITLE 10 - DEPARTMENT OF HUMAN
RESOURCES
Jyotice is hereby given in accordance with G.S.
J SOB- 12 that the Child Day Care Commission in-
tends to amend nde(s) cited as 10 NCAC 3U
.0102, .0202, .0303, .0401, .0511, .0601 - .0603.
.0705, .0707, .0712 - .07/3, .1606, .1615, .1701 -
.1702, .1716 - .1717, .1904, .200S, .2011, .2101.
.2501 - .2506. .2508 - .2510, .2601 - .2602, .2606
- .2608, .2611; repeal rule(s) cited as 10 NCAC
3U .0203; and adopt nde(s) cited as 10 NCAC
3U .0206, .0604, .2511.
1 he proposed effective date of this action is Au-
gust 1, 1990.
1 he public hearing will be conducted at 1:00 -
9:00 p.m. on April 26. 1990 at Holiday Inn North
(2815 Capital Bkd.). U.S. 1 North Boulevard.
Raleigh, N.C.
Cc
■ omment Procedures: Any interested person
may present his or her views and comments either
in writing prior to or at the hearing or orally at the
hearing. Any person may request permission to
be heard or information about the proposed ndes
by writing or calling Dolores Whittemore. Child
Day Care Section, 701 Barbour Dr'rve, Raleigh,
N.C. 27603; (919) 733-4801.
CHAPTER 3 - FACILITY SERVICES
SUBCHAPTER 3U - CHILD DAY CARE
STANDARDS
SECTION .0100 - PURPOSE AND DEFINITIONS
.0102 DEFINITIONS
The terms and phrases used in this Subchapter
shall be dcfmed as follows except when the con-
tent of the rule clearly requires a different mean-
ing. The defmitions prescribed in G.S. 110-86
also apply to these Rules.
(14) "Large child day care home" or "large
home" means any day care facility as defmed
in G.S. 110-86(3) which is authorized to
routinely provide care to a maximum of 12
children when any clidd present is pres-
chool-aged or, when all children present are
school-aged, to a maximum of 15 children.
The large home mav exceed these maximum
capacities, under the following conditions.
provided the appropriate child/statY ratios
are not exceeded:
(a) by no more than five school-aged children
for no more than one hour per dav, im-
mediately after school; and
(b) by no more than two children for a max-
imum of two weeks provided a sufficient
number of children are scheduled to be
deleted from the rolls of the large home
within such time to comply with the rou-
tinely required maximum capacities.
Statutory Authority G.S. 110-88; 143B-168.3.
SECTION .0200 - GENERAL PROVISIONS
RELATED TO LICENSING
.0202 CENTERS SUBJECT TO LICENSURE
Any day care center or large day care home as
previously defmed in Rule .0102 of this Sub-
chapter which provides care on a regular basis of
at least once per week, for more than four hours
but less than 24 hours per day, regardless of the
time of day and regardless of whether the same
or different children attend regularly, must be U-
censcd. These arrangements include, but are not
hmited to;
(4) preschool programs housed in a public
school building, whether operated by the
pubhc school system or a priwite pro\ider:
(5) large day care homes,
f^ summer day camps.
Statutory Authority G.S. 110-86(3); 143B- 168.3.
.0203 CENTERS NOT REQl IRED TO OBTAIN
A LICENSE (REPEALED)
IISS
4:24 NORTH CAROLINA REGISTER ^ [arch 15, 1990
PROPOSED RULES
Statutory Authority G.S.
I43B-I68.3.
110-86(3); 110-106;
.0206 CAPACITY OF THE FACILITY
(a) The licensed capacity shaU be no greater
than the number of children that the total pri-
mary space, as defined in Rule .1401, used by
children can accommodate at 25 square feet per
child.
(b) The number of children present at the fa-
cility shaU not exceed the licensed capacity of the
facility.
(c) The number of children occupying any
room of the facility shall not exceed the number
that the primary space in that room will accom-
modate at 25 square feet per child except as pro-
vided in Rule .1401 of this Subchapter.
Statuloty Authority G.S. 110-86(3); 110-91(6);
I43B-I6S.3.
SFXTION .0300 - PROCEDLRES FOR
OBTAINING A LICENSE
.0303 RENEWAL OF A LICENSE
(c) VVlien the Section's representative docu-
ments noncompliance on the announced renewal
visit, based on the severity and extent of non-
compliance, the representative may return to the
contL'r facility at a later date, but prior to the li-
cense expiration date, to determine if compliance
has been achieved; advise the licensee to submit
written verification that the noncompliance has
been corrected; recommend issuance of a provi-
sional license in accordance with Section .0400
of this Subchapter; or recommend denial of the
application for renewal. Final disposition of the
recommendation to deny is the decision of the
Section Chief When the application for rcncv\'al
of a license has been denied, the letter of denial
shall be posted prominently in the facility imme-
dialelv upon receipt. The stipulations of Rule
.0302(h) shall apply.
Statutory A ulliority
I43B-I68.3: I50B-3.
G.S. 110-88(5); J/0-93;
SECTION .0400 - ISSUANCE OF PROVISIONAL
AND lEMPORARV LICENSES
.0401 PROMSIONAL LICENSES
(a) A provisional license may be issued in ac-
cordance with the provisions of G.S. 110-88(6)
for any period of time not to exceed twelve con-
secutive months for any of the following reasons;
(4) To allow an applicant to open a facility
even though a license has not been issued.
pro\ided the applicant made initia: appli-
cation for a day care license at least four
weeks prior to the scheduled opening date,
has complied with the Section's requests
for informatic^n to demon.strate potential
compliance with the Oeneral Statutes and
the rules of this Subchapter, and the Sec-
tion has not determined that the applicant
is ineligible for a license.
Statutory' Authority G.S. 110-88(6); N3B- 168.3.
SECTION .0500 - AGE APPROPRIATE
ACTIVITIES FOR CENTERS
.051 1 ACTIVITIES FOR INFANTS AND
TODDLERS
(d) Infants shall have their positions and lo-
cations changed throughout the day and shall
have frequent opportunities each day to be out-
side the crib or playpen in addition to the time
spent attending to their physical care. A safe,
clean, uncluttered area shall be available to in-
fants to crawl or creep.
Statutory Authority G.S. 1 10-91 (2).( 12); I43B-
168.3.
SECTION .0600 -SAFETY REQLIRE.MENTS
FOR DAY CARE CENTERS
.0601 SAFE ENVIRONMENT
(a) A safe indoor and outdoor environment
shaU be provided for the children in care.
(b) All h^i/ardous items, materials and equip-
ment shall be used by children onh' when adult
supervision is pro\'idcd.
(c) Each day care center shall provide equip-
ment and fumisliings that are child-size or which
can be adapted for safe and effective use by chil-
dren. Chairs and tables shall be of proper height
for the cliildrcn who will be using them.
Statutory Authority G.S. 110-91(6); I43B-I68.3.
.0602 CONDITION OF EQLIPMENr AND
FLRNISIIINGS
(a) All equipment and furnishings shall be in
good repair and wi4i shall be maintained in use-
able condition.
(b) Equipment and furnishings shall be sturdy,
stable, free of sharp edges, lead based paint, loose
nails, splinters and other hazards that ma_\ injure
children.
Statuloty Authority G.S. 110-91(6); I43B-168.3.
.0603 OVERNIGHT FURNISHINGS
A safe and comfortable bed. cnb, or cot,
equipped with a firm waterproof mattress at least
4:24 NORTH CAROLINA REGISTER March 15, 1990
11S9
PROPOSED RULES
four inches thick will be provided for each child
who remains in the center after midnight.
Statutory Authority G.S. 110-91(6); I43B-I68.3.
.0604 GENERAL SAFETY REQLIREMENTS
(a) Potentially hazardous items, such as fu^-
earms and ammunition, hand and power tools,
nails, chemicals, lawn mowers, gasoline or kero-
sene, archery equipment, propane stoves,
whether or not intended for use by children, shall
be stored in locked areas or with other appropri-
ate safeguards, or shall be removed from the
premises.
(b) Electrical outlets not in use which are lo-
cated in space used by the children shall be cov-
ered with safety plugs unless located behind
furniture or equipment that carmot be moved by
a child.
(c) Electric fans shall be mounted out of the
reach of children or shall be fitted with an ap-
propriate mesh guard to prevent access by chil-
dren.
(d) All small electrical appliances shall be used
only in accordance, with the manufacturer's in-
structions.
(e) Electrical cords shall not be accessible to
infants and toddlers and extension cords shall not
be used. Frayed or cracked electrical cords shall
be replaced.
(f) AH materials used for starting fires, such as
matches and lighters, shall be kept in locked sto-
rage or shall be stored out of the reach of chil-
dren.
(g) Smoking shall not be permitted in space
used by children when children are present. All
smoking materials must be kept in locked storage
or out of the reach of children.
(h) Fuel burning heaters, fireplaces and floor
furnaces shall be provided with a protective
screen attached securely to substantial supports
to prevent access by children and to prevent ob-
jects from being thrown into them.
(i) Plants that are toxic shall not be in indoor
or outdoor space that is used by or is accessible
to children.
(j) Children shall play inside the fenced out-
door play area. Gates to the outdoor play area
shall remain securely closed while children oc-
cupy the outdoor play area.
(k) Air conditioning units shall be located so
that they are not accessible to children or shall
be fitted with a mesh guard to prevent objects
from being thiovvn into them.
(1) Gas tanks shall be located so they are not
accessible to the children or shall be in a protec-
tive enclosure or surrounded by a protective
guard.
(m) Cribs and playpens shall be placed so that
the children occupying them shall not have ac-
cess to cords or ropes, such as Venetian blind
cords.
Statutory Authority G.S. 110-85(2); 110-91(3),
(6); I43B-I6S.3.
SECTION .0700 - HEALTH AND OTHER
STANDARDS FOR CENTER STAFF
.0705 SPECLVL TRAINING REQLIREMENTS
(e) Each day care facility shall have at least one
person on the premises at all times who is certi-
fied by either the American Heart Association or
the iAmcncan Red Cross to perform child car-
diopulmonary resuscitation.
Statutory Authority G.S. 1 10-91; 143B-I68.3.
.0101 IN-SERVICE TRAINING
REQLIREMENTS
(b) The center director and any staff who have
responsibility for planning and supervising a day
care program, as well as staff who work directly
with children, shall participate in in-service
training activities aimually, according to the in-
dividual's assessed needs. An individual with
more than five years documented, professional
child care experience and more than lOU hours
of cumulative, approved in-service training shall
complete six hours of in-service training annu-
ally; all others shall attend 20 hours of in-service
training annually. Stcdf may ohoooo m^ ef tfee
foUowing options fof mot ' ting tl*e in ■ ior . ioo fe-
quiiLMUL'nt:
f44 ?-h» strtff p e rson shall complete 30 clock
hours ©f in senico training aoti' i itios
which af» related te- child eate et te the
pt ' iT i on'o jet* rcsponsibilitioH; ef
(^ U t4** steff person 1«» completed si*
quarter hours ef 64 clock hoiu's ef early
childhood education ef child development
aftd is enrolled m aft early cliildhood ef
child development cuiriculiun program,
completion ef ef emollment tft a course
' . s'hich is required »f approved fe* com
pletion ef that- curriculum program wiH
fulfill the annual in senico requirement.
Statutory
1 43 B- 168.3.
Authority G.S. 110-91(11);
.0712 STAFF/CHILD RATIOS FOR SMALL
CENTERS
(a) The staff/child ratios and group sizes for a
small day care center are as follows:
f4^ Effective LX-cember h 4^^^^
Aee of Children No. Children
1190
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
to 5 years
2 to 5 years
3 to 5 years
5 years and older
No. Staff
1
1
1
1
7
10
15
20
Group Size
14
20
25
25
f3^ Eff e ctiv e JtOy h 4^^^
Age ef Childron >^ Childron
^^ to •^ y e ars 44
N^ Staff
Group S«e
4-
n
4-
m
4-
3^
4-
3^
Statutory Authority G.S. 110-91(7); I43B-I6S.3.
.0713 STAFF/CHILD RATIOS FOR MEDIUM
AND LARGE CENTERS
(a) The staff/child ratios and group sizes for
single-age groups of children in medium and large
day care centers are as follows:
(4^ Eff e ctive Docombor h 4^>^^
Age of Children No. Children
to 2 years 7
2 to 3 years 12
3 to 4 years 15
4 to 5 years 20
5 years and older 25
No. Staff
Group Size
14
24
25
25
25
^ Effoctivo
Age ef Crhiidi
t» 5 VL'uru
=eft
Wef
4t WSOf
^^ier Childron
4
44-
44
4^
34
^ te 4 yoaro
4 te -S )ears
^ yeurti aft4 e
>;^Steff
4-
4-
4-
Sf&(
4a
i3
3^
4 3^
4 3^
(i) Except as provided in Paragraph (g) of this
Rule, statf members who are counted in meeting
the staff/child ratios as stated in this Rule shall
not concurrently have responsibility for food
preparation or other duties which are not direct
child care responsibilities.
Statutory Authority G.S. 110-91(7); I43B-I68.3.
SECTION .1600 - AA REQUIREMENTS
.1606 STAFF/CHILD RATIOS IN AA CENTERS
(a) The center shall comply with the staff-child
ratios and group sizes set in this Rule.
(44 E.ff e ctive Jttly 47 -W^
Aoe
STALE
Sh44» t« 4a monthf.
4
4 t«- 3 'I'Oars
4-
3 te ^ vears
4-
i te- 4 vears
4
4
4-
^ te- 4 vears
6 aft4 oldor
4
NUMBER Q^
GROUP
CHILDREN
S4Z6
STAFF
^
4a
3
9
44
3
a
\%
3
4«
3©
3
4^
3§
3
44
3^
3
3©
34
3
{^ Effjctivo .fely 47 ¥mk
AGE
STALE
Birth to 12 months
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
5 to 6 vears
6 and older
NUMBER OF
GROUP
1
CHILDREN
SI/E
STAFF
5
10
2
6
12
2
9
18
2
10
20
2
13
25
2
15
25
2
20
25
2
'/.-i'/ NORTH CAROLINA REGISTER March 15, 1990
1191
PROPOSED RULES
Statutory Authority G.S. 110-88(7); I43B-I683.
.1615 NIGHT CARE
full timo shift at- the tkty eaf© cent e r ef another
buoixioss.
Statutory Authority G.S. 110-88(7); I43B-168.3.
SECTION .1700 - DAY CARE HOME
STANDARDS
.1701 GENERAL PROVISIONS RELATED TO
REGISTRATION OF HOMES
(b) At the beginning of each fiscal year, the
Section shall prepare a written plan explaining
the guidelines for making randornly-selected un-
announced compliance visits to registered day
care homes. Recognizing day care homes usually
have only one caregiver present, unannounced
compliance visits will be reasonably unobtmsive
and not distract the caregiver from the usual
routines and responsibilities. The plan shall be
dated and signed by the Section Chief and shall
be kept in a confidential fde by the Section Chief.
(c) Wlien a day care home exists, all pres-
chool-aged children shall be counted in the reg-
istered capacity. This includes the caregiver's
own preschool-aged children. The preschool-
aged child of an emergency caregiver need not be
counted in the registered capacity for the first day
of the emergency caregiver's service.
History Note: Statutory Authority G.S. 1 10-85;
110-86(4); 110-88(3); 110-90. 1; IIO-IOI; 110-
105.1; 1 10- 106.1; 1 43 B- 168.3.
.1702 INITIAL REGISTRATION
(c) Upon receipt of an acceptable application,
the Section shall may issue written permission to
operate on a temporary basis. A person is not
able to operate legaUy until he or she has received
tbftt- pormir . r . ion. cither temporary permission to
operate or a registration certificate.
Statutory Authority G.S. 110-88(3); IIO-IOI;
143B-I68.3.
.1716 FAILURE TO MEET AND MAINTAIN
REQUIREMENTS
(c) The Section may recommend imposition
of a civil penalty in accordance with the proce-
dures set forth in Rules .3201 through .2205 of
this Subchapter and according to the following
schedules:
(1) A civil penalty in an amount up to one
thousand dollars ($1.000.00) may be im-
posed when the Section has substantiation
that a child was abused or neglected while
in the care of the day care home.
(2) A civU penalty in an amount up to two
hundred dollars ($200.00) may be im-
posed for the following violations:
(A) A history of exceeding the number of
children allowed in a registered day care
home;
(B) Repeated incidences where there has
been a lack of su£ervision of the children;
or
(C) Willful, repeated pattern of noncom-
pliance with any requirement contained in
this Subchapter or in the General Statutes^
(3) A civil penalty in an amount up to one
hundred dollars ($100.00) may be im-
posed for the following violations:
(A) Denial of entry to an authorized repre-
sentative of the Department or Section;
(B) Documented noncompliance with the
number of children aUowed in a registered
day care home;
(C) Lack of supervision of the children in
care; or
(D) Failure to comply with a corrective
action plan designed by the Section to
correct noncompliance with any applica-
ble requirement in this Subchapter or in
the General Statutes.
Statutory Authority G.S. 110-88 (3),(5),(6a);
110-98; IIO-IOI; I43B-168.3.
Mil HEALTH, SAFETY AND SANITATION
REQUIREMENTS
(a) Each day care home shall comply with the
following standards in order to maintain a safe,
healthy and sanitary environment for children:
(1) To assure a healthy environment, the op-
erator shall:
(A) have on file, for each child who attends
on a regular basis, a health and emergency
information form completed and signed
by the child's parents or guardian. The
completed form must be on fde on the
first day the child attends. A recom-
mended form is available from the Sec-
tion. However, the operator may use
another form provided that form includes
the following information:
(viii) notarized authorization for the op-
erator to seek emergency medical care
in the parent's absence.
(D) provide adequate and individual space
for each child to rest comfortably.
(F) provide a quiet, separate area which can
be easily supervised for children too sick
to remain with other children. Parents
1192
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
must be notified immediately if their child
becomes too sick to remain in care.
(G) visually supervise all children who are
awake and be able to hear and respond
quickly to those children who are sleeping
or napping. 44*e operator must be able
te- r e spond te- tbe childr e n immodiatoly.
(11) be able t» provido successfully complete
basic multimedia fu-st aid course prior to
registration.
(I) be certified by the American Heart As-
sociation or the American Red Cross to
perform child CPR prior to registration.
(3) To assure a safe enviromncnt, the home
operator shall:
(A) keep all areas used by the children, in-
doors and outdoors, reasonably clean and
orderly and free of items which are po-
tentially hazardous to children. This in-
cludes the removal of small items that a
child can swallow. In addition, loose nails
or screws and splinters must be removed
on inside and outside equipment.
(E) cover aU electrical outlets not in use and
remove old, cracked or fraved cords in
occupied outlets.
(H) keep all medicines in locked storage,
ef ift a plact? oomplotely inacooooiblo to
cliildron.
(I) keep hazardous cleaning supplies and
other oubf i toncoo items that might be poi-
sonous out of reach or in locked storage
when preschool-aged children are in care,
e.g. toxic plants.
(P) enclose any in-ground swimming pools
18 inches or deeper by a fence not less
than 5 feet high to prevent chance access
by children. The swimming pool shall be
separate from the play area. Access to the
water in above ground swimming pools
must be prevented by locking and secur-
ing the ladder in place or storing the lad-
der in a place inaccessible to the children.
(R) practice fife dftH procoduroa with tbe
children at- leas* monthly, and maintain
records of monthly fire drills giving the
date each drill is held, the time of day, and
the length of time taken to evacuate the
home.
(S) make all necessary efforts to provide a
safe indoor and outdoor environment for
the children in care. Animals that are
potentially danuerous to children, such as
pit bulldoizs and rottweilers or other ani-
mals determined bv the Section to be
dangerous, arc not pcnnittcd on the
premises of a day care home.
(4) To assure the safety of children whenever
they are tran.sported, the operator, or any
other transportation provider, shall:
(A) have written permission from a parent
or guardian to transport his or her child
and notify the parent when and where the
child is to transported.
(5) 1 o assure a sanitary environment, the op-
erator shall:
(A) have a well or water system that com-
plies with the requirements of the local
health department and the Division of
Health Services, Department of Human
Resources. Written verification of well
approval is required.
(G) refrigerate aU perishable food and bev-
erages. The refrigerator shall be in good
repair and maintain a temperature of 45
degrees Fahrenheit or below. A refriger-
ator thermometer is required to monitor
the temperature.
(b) The operator shall assure that the structure
in which the day care home is located comphes
with the following requirements:
(1) Comply with Section 509.2 of the North
Carolina Building Code or have written
approval for use as a day care home by
the local building inspector as follows:
(A) Meet Volume I-B I'niform Residential
Building Code oi tie a manufactured
home bearing a third party inspection la-
bel certifying compliance with the federal
Manufactured Home (_\:>nstruction and
Safety Standards or certif\ing compliance
with constRiction standards adopted and
enforced by the State of North Carolina.
Homes shall be installed in accordance
with North Carolina Manufactured' .Mo-
bile 1 lome Regulations published by the
NC Department of Insurance.
Hxception: Single wide manufactured
homes will be limited to a maximum of
three preschool-aged children (not more
than two may be two years of age or less)
and two school-aged children.
(B) All children shall be kept on the ground
level with an exit ■■^X_ grade.
(C) All homes shall l2e equipped with an
electrically operated (with a battery
backup) smoke detector, or one elec-
trically operated and one hatters operated
smoke detector located next to each other.
(D) All homes shall be pro\idcd with at
least one fi\e lb. 2-A:l()-B:C t\ne extin-
guisher readily accessible for evei'v 2.500
square feet of floor area.
(E) Fuel burning space heaters, fireplaces
and floor furnaces which are listed and
4:24 NORTH CAROLINA REGISTER March 15, 1990
1193
PROPOSED RULES
approved for that installation and are
provided with a protective screen attached
securely to substantial supports will be
aUowed. However, unvented fuel burning
heaters and portable electric space heaters
of all types are prohibited.
f3) llavQ at- leant &r# omoko dot e otor aR4 9ftt»
fife oxtinguishor plac e d m appropriat e l©-
oationo.
(2) (^ Assure that all indoor areas used by
children are adequately heated in cool
weather and ventilated in warm weather.
f4^ Af i suro tj^at feet burning hoatoro afe prop
efiy vented te- tfee outside. Fuel burning
hoatoro, firoplacoo, otovos, aft4 portable
oloctrio opauo hoatoro ohall have a ooouroly
attuchod guard.
(3) Cover or insulate hot pipes or radiators
which are accessible to the children.
Statutory Authority G.S. 110-88(3); 110-101;
1 43 B- 1 68. 3.
SECTION .1900 -SPECIAL PROCEDLRES
CONCERNING ABLSE/NEGLECT IN DAY
CARE
.1904 ADMINISTRATIVE SANCTIONS
(a) A special provisional license or registration
may be issued for a six-month period when the
Section determines that abuse or neglect occurred
in a child day care center or home. The follow-
ing provisions shall apply:
(1) the special provisional license or registra-
tion and the reasons for its issuance shall
be posted in a prominent place in the
center or home as soon as they are re-
ceived by the Ucensee or registrant,
(c) A civil penalty, in accordance with the
schedules Listed in Rules .1716 and .2206 of this
Subchapter, may be levied against the operator
of a day care home or center when the Section
determines that child abuse or neglect has oc-
curred while the child was in the care of the home
or center. In addition, any Any violation of the
terms of a special provisional license or registra-
tion may result in the assessment of a civil pen-
alty as provided in Rule .1716 and Rules .2202
through .2206 Soction .2200 of this Subchapter.
Statutoiy Authority G.S. 110-88(5); 110-88(6a);
SECTION .2000 - RULEMAKING AND
CONTESTED CVSE PROCEDLRES
.2008 WRITTEN REPRI.MANDS
(e) ¥he r e primand shall be posted m a promi
n e nt plaoo m the contor Bf homo fof a p e riod ef
Statutory Authority G.S. 110-102.2; I43B-168.3.
.2011 REVOCATION
(c) The revocation order shall specify the rea-
sons for its issuance and the effective date of re-
vocation and shall be posted prominently in the
center or home immediately upon receipt. The
licensee or registrant shaU surrender the license
or registration on the effective date of the revo-
cation order and shaU refrain from operating the
center or home thereafter.
fd) If revocation is stay e d ponding app e al, the
ro' i ocation ord e r shall be posted m a prominent
place ift the contor »f homo ponding final action.
(d) (e) Failure to comply with the revocation
order shall result in civil action in accordance
with G.S. 110-103.1 or a criminal penalty in ac-
cordance with G.S. 110-103, or both. The Sec-
tion may also seek injunctive relief in accordance
with G.S. 110-104.
(e) (f) The operator may not apply for a new
Ucense or registration for that facility or home for
at least 90 days from the effective date of the re-
vocation order or, when administrative or judicial
review is requested, from the date the fmal agency
decision or judicial determination is rendered,
whichever is later.
Statutory Authority G.S. 110-102.2; 143B-168.3;
150B-3.
SECTION .2100 - CHLRCH DAY CARE CENTER
REQUIREMENTS
.2101 CENTERS OPERATING UNDER
G.S. 110-106
(b) Church day care centers shall comply with
all day care center requirements in this Subchap-
ter except for the rules regarding age-appropriate
activities in Rules .0505 -^ .051 1(a) Soction rft^OO
and Rules .0704, .0707 - .071 1 and Paragraphs (a)
througli (d) of Rule .0714 regarding staff quali-
fications and training requirements. Compliance
shall be documented at least annually using the
same forms and in the same manner as for aU
other centers.
Statutory Authority G.S. 110-/06; 143B-168.3.
SECTION .2500 - DAY CARE FOR
SCHOOL-AGE CHILDREN
.2501 SCOPE
The regulations in this Section apply to largo
day- eafe homos aft4 all cliild day care contoro fa-
1194
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
cilities offering care to six or more school-age
children exclusively or as a component of any
other program. All regulations in this Subchap-
ter pertaining to fuU-time, part-time, or seasonal
child day care shall apply to programs for
school-age children except as provided in this
Section.
Statutory Authority G.S. 110-86(3); 110-91;
I43B-I68.3.
.2502 SPECIAL PROVISIONS FOR
LICENSURE
(a^ A contor facility providing care for school-
age children exclusively shall be issued a license
restricting care to school-age children as defined
in Rule .0102 of this Subchapter. The license
shall be issued for the time period the facility wJU
operate, not to exceed a maximum of _12 months.
A oont e r facility providing care for school-age
children exclusively on a seasonal basis between
May 15 and September 15 shall be licensed as a
summer day camp.
(fe) A contor which pro' i idoG eafe fof proochool
childri ^ n a«4 fof mor e than t«* F . chool ag a chU
dron r . haU b» iscuod a liconr . o with a ridor a«-
thoiiaing caro f&f lichoul age oliildron.
Statutory Authority G.S. 110-S8(I); 110-91;
1 43 B- 168.3.
.2503 BUILDING CODE REQUIREMENTS
(a) Building code requirements adopted by re-
ference in Section .1300 of this Subchapter shall
apply for a contor facility providing care to
school-age children when any preschool-age child
is also in care.
(b) Any building which is currently approved
for school occupancy and which houses a public
or private school during the school year shall be
considered an approved building to house a eeft-
tep facility serving school-age children exclusively.
The operator shall be responsible for obtaining
and submitting copies of aU applicable inspection
reports.
(c) For the purpose of carrying out the pro-
visions of G.S. 1 10-91(4) for uchool ago eafe at-
rangemantr. summer day camps not covered by
Paragraphs (a) or (b) of tliis Rule, the following
North Carolina Building Codes shall apply to the
structure described in Rule .2504(b):
(1) When the authorized capacity of the facil-
ity is less than 30 children, the structure
shall, at the mmimum, meet the require-
ments for residential occupancy as pre-
scribed in Volume IB of the North
Carolina BuUding Code. Cliildrcn may
use only those floors which leave at least
one grade level exit.
(2) When the authorized capacity of the facil-
ity is more than 29 children, but less than
100 children, the structure shall, at the
minimum, meet the North Carolina
Building Code requirements for business
occupancy.
(3) When the authorized capacity of the facil-
ity is more than 99 children, the structure
shall, at the minimum, meet the North
Carolina Building Code requirements for
assembly occupancy, or educational oc-
cupancy or institutional occupancy.
(d) A copy of the North Carolina Building
Code is on file at the Child Day Care Section at
the address given in Rule .0102 of this Subchap-
ter and shall be available for public inspection
during regular business hours.
Statutory Authority G.S. 110-88(2); 110-91(4);
1438- 168.3.
.2504 SPACE REQUIREMENTS
(a) rVU space requirements specified in Section
.1400 apply when a contor facility provides care
for school-age children and any preschool chdd
is also in care, or when a program which provides
care exclusively for school-age children routinely
operates indoors in a permanent structure for
more than 25 percent of each day. A gymnasium
or other single use room may be included in the
space measured for licensed capacity when used
as primary space.
(b) A contor facility licensed as a summer day
camp shaU have a permanent structure tlwrt-
sop i ' e s ae it* homo ba ' io V i horo paronta doli'rer aft4
pick Hf» th e ir childron ouch i^i^ c*ft4 may choor.o
located at the home base which is the primary
site of the day camp acti\ities. The permanent
structure may be a building or permanent roofed
shelter with overhang. The day camp shall meet
one of the following space requirements:
(1) When activities for children are routinely
conducted outdoors or off the premises
for at least 75 percent of each day, a min-
imum of ten square feet per child of in-
door space, exclusive of kitchens,
hallways, restrooms, closets, and storage
areas, shall be pro\idcd.
(2) Wlien the camp's home base does not
provide te.n square feet of primary space
indoors, the camp shaU provide notarized
copies of aU letters, agreements, or con-
tracts with other facilities which guarantee
that children wUl be accommodated com-
fortably indoors in the event of inclement
weather.
4:24 NORTH CAROLINA REGISTER March 15, 1990
1195
PROPOSED RULES
Statutory Authority G.S. 1 10-91 (3), (6);
1 43 B- 168.3.
.2505 HEALTH REQUIREMENTS FOR
CHILDREN
(a) All requirements of Section .0800 of this
Subchapter apply to school-age child care ar-
rangements with the following exceptions:
(1) A medical examination report shall not
be required for any child enrolled in an
accredited public or private school.
f3) A iitatemont r . ignL'd by Ae public er pri-
vate school principal Bf kis dor . ignoo at-
tOBting t» ti»» prooonco ef a oomploto
immunii'.ation r e cord vpt tbe F i chool ftl«»^
mciy be i i ubr . titutud fof a record ef m-
muni/uti(ms.
(2} 1^ Rule .0806 does not apply.
(3) If the day camp maintains its master re-
cords for children and staff in a central
location, emergency inlbrmation for each
staff person and child shall always be on
site. The emergency information on site
shall include the name and telephone
numbers of the child's parent or other re-
sponsible person, the child's or staff per-
son's physician or preferred hospital, any
chronic illnesses and medication taken for
that illness, any allergy and recommended
treatment for tha t allergy, and any other
information that has a direct bearing on
medical treatment and safe care. I'he
parent's signed permission to obtain
medical attention must also be on site
with the child.
(b) AU requirements specified in Section .0900
of this Subchapter apply when any preschool
child is in care or when food is provided by the
contor »f r . ummur day camp, facility.
(c) If food is prepared at the summer day camp,
the regulations regarding sanitary facilities, food
preparation and service for summer camps as
adopted by the Health Services Commission and
codified in 10 NCAC lOA .1000 shall apply.
(d) If food is brought from home by children
or catered, the following requirements apply:
(1) Sanitary cold storage shall be provided for
perishable snacks or lunches brouglit from
home.
(2) Fror . h Safe drinking water shall be made
available at all times regardless of where
activities are provided.
Statutory
1 43 D- 1 68. 3.
Aui/iority G.S. 1 10-91 { I ),(2);
(a) First aid equipment shall always be avail-
able regardless of where activities are provided,
^(b) All regulations in Rule .1403 regarding
swimming pools apply.
(c) Archory oquipmont, pow e r e quipment aft4
othor potentially hai'.ardouo it e ms shall b» stor e d
ift a lockod afea when »»* m w» »f with othor
appropriat e safeguards. Thooo items shaU b»
uood by children only under the direction aft4
supop i 'ioion ef staff. Potentially hazardous items,
such as archery equipment, firearms and ammu-
nition, hand and power tools, propane stoves, or
chemicals shall be used by children only when
adult supervision is provided. Such potentially
hazardous items, whether or not intended for use
by the children, shall be stored in locked areas
or with other appropriate safeguards, or shall be
removed from the premises.
(d) All equipment, materials and facilities used
by children shall be in good repair, of safe design,
and properly installed.
(e) Children shaU wear life jackets whenever
they participate in boating, rafting or canoeing
activities.
Statutory Authority G.S. 110-91; 143R-168.3.
.2508 AGE-.\l'PROPRI,\TE ACnvniES
(a) Child day care facilities which provide care
to school-age children shall provide activities ap-
propriate to the age and interests of the children.
(b) (a)- The requirements for age appropriate
activities and materials set forth in Rules .0506 -
.0509 shall apply to school-age programs which
operate for more than three hours per day and
which routinely operate a program of care in-
doors for more than 25 percent of each day in
space designated, and which has been approved
by the Section, for that purpose.
(b^ Child day eafe centers i i vhich provide eape
te school ag e children f»f »» more than three
hours pef day shall pro' t ide equipment, materials
aftd opportuniti e s f»f at- l e ar i t thr ee ef i^ typos
t4 acti' i itie j i li ;. led i«- Rule .05 10(e). Actisity ar e as
shall be UF . ed wh e r e f e asibl e .
(c) When activities for children are routinely
conducted outdoors or otT the premises for at
least 75 percent of each day, equipment and ma-
terials shaU be provided to enable children to
participate in at least three different activities
each day.
(d) fe) All equipment and materials used by
school-age children shall be appropriate for the
age and size of the children using the items.
Statutory Authority G.S. 1 10-91 (6). ( 12); 143B-
168.3.
.2506 GENERAL SAFETY REQUIREMENTS
1196
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
.2509 ACTIVniKS: OKF PRKMISES
(b) The ocntur facility shall develop a schedule
of activities which is posted in a conspicuous
place in the home base or given to the parents.
Statuton> Authority G.S. 1 10-91 (6), ( 1 2); I43B-
I6S3.
.2510 STAFF QUALIFICATIONS
(a) The staff requirements in Section .0700
shall apply to any school-age program which is
operated on a full year basis as a unit of a contor
facility which also provides care to preschool-age
children.
(b) Each day camp or before/after- school pro-
gram shall have an administrator on site who is
at least 21 years old and has at least one year of
full-time experience or two summers' experience
working with school-age cluldren in a day care
or day camp setting.
(c) There shall be at least one staff person who
is at least 18 years old and literate for each group
of 25 children present, ef wh e n +4 afwi 44 yeaf
e44 pL'r i : i »nL' i aw counl e d i» 4*e L . taff child nitio,
pcr ' jonti ' I ' . ith e ach gioup oi 34 children present.
(e) Whenever cliildren participate in swimming
or other aquatic activities, the following pro-
visions shall apply:
(1) The children shall be supervised by per-
sons having American National Red
Cross fetfe saving Lifeguard certificates or
equivalent certificates:
(A) One lifeguard is required for groups of
25 or fewer children.
(B) Two lifeguards are required for groups
of 26 or more children.
The Litaff child ratios required m tfeis
Subchapt e r f»f school aged children shall
always be maintained. 44*e required tfe-
guards shall ftt-4 be counted m- the number
ef staff required te meet the staff child fa-
f5i fe addition to- the requirements (*f Sub
paragraph (e)( 1). the s . taff child ratio shall
be B«e adult te each 4-? children m bodies
ef water other than swimming pools.
(2) (^ A person with lifeguard certification is
not required when there are no more than
12 children present and the body of water
has no portion deeper than 30 inches and
the total surface area is not more than 400
square feet. The children shall be super-
vised by at least one adult who is certified
to perform cardiopulmonaPv" re '. usitatum.
resuscitation.
(4} Children shall weaf Ufo jack e ts wh e nev e r
they participate » boating, rafting »f Ga-
nooing activities.
Statutory Authority G.S. 1 10-91 (8},{ 1 1 ): I43B-
168.3.
.251 1 OTHER STAFF RFQL IRFMKMS
(a) The staff/child ratios required in this Sub-
chapter for school-age children shall always be
maintained. The required lifeguards shaU not be
counted in the number of staff required to meet
the staff/child ratio.
(b) In addition to the requirements of Rule
.2510(e)(1) of this Subchapter, the staff/child ra-
tio shall be one adult to each 12 children in
bodies of water other than swimming pools.
Statutory Authority G.S.
I6S.3.
1I0-91(S).(I1); 143B-
SECTION .2600 - REQIIREMENTS FOR LARGE
DAY CARE HOMES
.2601 SCOPE
The Rules in this Section apply to large child
day care homes. A large child day care home or
large home shaU routinely provide care to no
more than 12 children when any preschool-age
child is in care, or when all children present are
school-age, to no more than 15 children, except
as allowed by Rule .0102 of this Subchapter.
AU children present, including except the opera-
tor's own school-age children, shall be included
in the ma.ximum number of children allowed to
be present.
Statutory Authority G.S. 110-86(3): I43B-I6S.3.
.2602 GENER.VL PRO\ ISIONS FOR
LICENSURE
(g) Announced and unannounced \isits shall
be conducted as quickly as pt)ssible to aUow car-
egivers to give full attention to the children in
care and to resume their routines and schedules.
Statutoiy Authority G.S. II0-S8; 110-93; I43B-
168.3.
.2606 STAFF REQUIREMENTS
(b) The operator shall be at least 21 years old
and hterate and shall have completed at least one
year of fuU-timc caregiving experience in a regis-
tered or licensed child day care home or center
or have equi\alent child care experience that can
be venlied.
(f) The operator of each large home shall
comply with the special training requirements
regarding recognition »f inf e ctious diseases aft4
4:24 NORTH CAROLINA REGISTER March 15, 1990
1197
PROPOSED RULES
fifrt ai4 training prescribod hf in Rule .0705 in
this Subchapter.
(g) The operator and each staff person required
to meet the staff/child ratio shall participate in »
minimum ef 30 hours ef mservice training annu-
ally as required by Rule .0707 of this Subchapter .
The content of the training shall be directly re
lated to the care of children and shaO meet the
criteria of Rule .0708 of this Subchapter.
Statutory Authority G.S. 110-86(3);
110-91(8). (I I): I43B-I6S.3.
.2607 STAFF/CHILD RATIOS AND
SLPRRVISION
(a) The staff/child ratios and group sizes for a
large child day care home are as follows:
Aue of Children
Number of Children
to 4 years
6
Number of Staff
1
Group Size
12
Age of Children
to 13 years
Number of Children
8
Number of Staff
1
Group Size
U 16
(No more than three children may be less than
12 months old)
Age of Children
2 to L3 years
3 to 13 years
School-aged
Number of Staff
1
1
1
Number of Children
10
12
15
Group Size
«20
44 24
4^25
(4) I ,arg e hom e r , r . hall He4- be roquirod te hav e
comm e rcial kitchen oquipmont.
{^ Larg e homoii shall Ret- be roquirod te- have
separate handwashing facilities fof striff ef sopa
fate flush aroas fof diapers. I low e v e r, Ae 4id-
L,' V 1 u I c, til \jtt mmTT T.j\j I yj KJ\x^\7^y u ikj ■j\j \.\j ct
handwashing lavatory which i* He* ift Ae
kitohon.
(d) f^ The home shall have at least two re-
motely located exits directly to the outside.
(e) fg) Firearms and other weapons on the
premises shall be secured so that they are inac-
cessible to the children.
(f) (fe^ Each large home shall have at least 25
square feet of indoor space for each child for
which the home is licensed. The indoor space
shall be measured by a representative of the Sec-
tion and shall include only those areas of the
home which are routinely made available to the
children. The indoor space shall not include
closets, bathrooms, storage areas, utihty rooms,
kitchens or space occupied by furniture or
equipment that is not used by the children. The
dining area of a kitchen may be counted if it is
routinely used for cluldren's activities in addition
to eating.
(g) fi^ Each large home shall have an outdoor
play area which provides at least 75 square feet
of play area for each child present. The play area
shall be fenced or afford adequate protection by
some other means as detennined by the Section.
(h) (j) The outdoor play area shall be free of
equipment, litter, animals and other objects
which may be hazardous to cliildrcn.
(i) fk^ The requirements set forth in Rule .1403
for the use of swimming pools on or off the
premises shall apply to large homes.
Statutory Authority G.S. 110-86(3);
110-9/(3). (4). (5), (6); I43B- 168.3.
Statutory Authority G.S. 110-86(3); 110-91(7);
1 43 B- 168.3.
.2608 AGE-APPKOPRLAIK ACIIVITIES AND
EQLIPMKNl
(a) Each large home shall have a written sche-
dule posted a\ailable for easy reference by par-
ents and caregivers.
Statutory Authority G.S. 110-86(3);
110-91(6), (12); I43B-I6S.3.
.261 1 PHYSICAL FACILITY AND SPACE
REQUIREMENTS
No
ot/ce is hereby given in accordance with G.S.
1 SOB- 12 that the Department of Human Re-
sources - Division of Social Services intends to
amend rulc(s) cited as 10 NCAC 49B .0308.
1 he proposed effective date of this action is
September I. 1990.
1 he public hearing will be conducted at 10:00
a.m. on June 6, 1990 at Disability Determination
Building. 321 Chapanoke Dr'ne. Raleigh. NC
27603.
U9H
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
Co
. omment Procedures: Interested persons may
present their views and comments in writing before
or at the hearing or orally at the hearing. Time
limits may be imposed as deemed necessary by the
Commissioner Chairman. A fi.^cal note has been
prepared. Any person may request information^
or copies of the proposed regulations by writing
or calling Donna A. Creech, Special Assistant,
Social Services, 325 N. Salisbury St., Raleigh, NC
276/1 9/9/733-3055.
CHAPTER 49 - Al DC
SUBCHAPTER 49B - ELIGIBILITY
DETERMINATION
SECTION .0300 - ELIGIBILITY FACTORS
.0308 INCOME
(c) Earned income exclusions are found in 45
CFR 233.20 and this provision is hereby adopted
by reference under G.S. 150B- 14(c). hi addition,
the following items of earned income shall be
excluded in determining eUgibihty:
(1) Foster Care and State Foster Flome Pay-
ments equal to or below the state maxi-
mum rates to AFDC recipients who serve
as foster parents;
(2) Famed income from the 185 percent lim-
itation for up to six months in a calendar
year of a child apphcant /recipient who is
a full-time student;
(3) Famed income from census employment
under Section 1115 Demonstration I'ro-
ject Approsed by the Dl 1! IS contingent
on receipt of federal rcuulations in suffi-
cient time for implementation.
Authority G.S. /OSA-25; /OSA-33: /43D-153; 45
C.F.R. 233; Section ///5 of the Social Security
Act.
TITLE II - DEPARTMENT OF
INSURANCE
Co
No
otice is hereby given in accordance with G.S.
/50B-/2 that the N.C. Department of Insurance
intends to amend rule(s) cited as // NCAC 8
.0702, .0705, .0706, and .0709.
I he proposed effective date of this action is .lulv
/, /990.
1 he public hearing will be conducted at /0:00
a.m. on April 26, /990 at N.C. Department of In-
surance, Qualifications Board. 410 Boylan .-ivenue,
Ralei<rh. \.C.'276//.
omment Procedures: Written comments may
be sent to Grover Sawyer, c/o Qualifications
Board, P.O. Box 26387, Raleigh, N.C. 276//.
Oral presentations may be made at the public
hearing. Anyone having questions should call
Grover Sawyer at (9/9 J 733-390/ or Ellen
Sprenkelat (9/9) 733-4700.
CHAPTER 8 - ENGINEERING AND BUILDING
CODES
SECTION .0700 - QUALIFICATION
BOARD-STANDARD CERTIFICATE
.0702 NATURE OF STANDARD CERTIFICATE
(a) The Board will issue one or more standard
certificates to each code enforcement official de-
monstrating the qualifications set forth in Ruloo
m^ and;or mm^ U NCAC 8.0706 and /or
.0707. Standard certificates are available for each
of the following types of qualified code enforce-
ment officials:
(1) code administrator;
(2) buUding inspector;
(4) plumbing insp e ctor;
f4^ mochanicul inspuctor;
f^ olectrical iiif . pector.
(3) electrical inspector;
(4) mechanical inspector;
(5) plumbmg inspector; and
(6) hre mspector.
(b) For each type of enforcement official other
than code administrator, the Board has estab-
lished three levels of qualifications. Level 1 for
each type of official represents generally the skill
level required for inspection of one-family and
two-family dwellings and relatively smaU struc-
tures designed for other purposes. Level II for
each type represents the skill level required for
inspection of intermediate-sized or more complex
buildings. Level III for each type represents the
skill level required for inspection of buildings of
any size or degree of comple.^dty. [For details, see
Rt4e .0706(a) U NCAC 8 .0706(a) ].
(c) The holder of a standard certificate is au-
thorized to practice code enibrcement only
within the inspection area and level described
upon the certificate issued by the Board. A code
enforcement official may qualify and hold one
or more certificates. These certificates may be for
different levels in different types of positions.
(d) A code enforcement official holding a cer-
tificate indicating a specified level of proficiency
in a particular type of position is authorized to
hold a position calling for that type of quahfica-
tion anywhere in the State of North Carolina.
A standard certificate must be renewed amiually
in order to remain valid.
4:24 NORTH CAROLINA REGISTER March 15, 1990
1199
PROPOSED RULES
Statutory Authority G.S. 143-151.13; 143-151.16.
.0705 APPLICATION: WHERE MADE
AND FEE
The completed application and all required
supplementary' information shall be returned to
the Board at P.O. Box 26387, Raleigh, North
Carolina 27611. Each apphcation (whether for
one or several standard certificates for a single
individual) shall be accompanied by payment of
a teft twenty dollar (i 10.00) ($20.00) fee, cither
in cash or by a check made payable to the North
Carolina Code Officials Qualification Board.
Statutory Authority G.S. 143-151 .16.
.0706 REQUIRED Ql AI.IIICA IIONS:
TYPES AND LEVELS
(a) QuaUfication Levels
(1) With respect to all types of code enforce-
ment officials other than code administra-
tor, those with Level 1, Level U, and Level
III certificates shall be qualified to inspect
and approve only those types and sizes of
buildings specified in the tabic.
(2) Limitation on MiiKimum maximum size
of buildings for Building, Llectrical, Me-
chanical, and Plumbing inspectors. Levels
L II and III: NO CIIANGL IN TABLE
fb) ift ttii cai . tfLi ' . i . 'h e r t* thow rogukitions r e quir e
a r . upporting lottur, «h4 luttcr i i hull be notaii/cd,
iihall iitato the author' - .i quulificationo (i.e., ' . ' ■ hat
typ e afl4 Ic ^ ol ef coilificate w^ liceiir .e he holdf . ),
shall i . tatc t4*Ttt the appliciint h*i ' . sorkcd undor
his direct f i uper\ir i ion ftw a specifiL'd period »f
time, a«4 -. hall r e comm e nd CLMtification »f the
applicant as a spocifiod type aH4 lev e l ef inopc'ctor
upon L . ati!; . faction e4 othcT ruquirc'd quiillficiitiono.
f«T> Codo Administrator. A r . tandard curtiricatu,
code adminif . trator, >. hall be i '.ii ued te- rt»y appli
ea+vt 'a4+» meotr . att »f the ciitLMia f4-^ (4fr f^Hr (4)
aft4 ("^ »f thi* Paragraph:
f4-)- proside - .i curtilicution by a ei+y ef county
manager e+ L'lo i k that the applicant » the
admini 'i trati' i c head &i "code
onforcemuat" a* dofinod by G.S.
1 I.] 151.S(a)(.V) a* aft employee »f that
local g(n e rnm e nt h+ certification by the
head ef the I'ngineering aftd Buildmg
Codes Di' i i ' .ion t+f the North Carolina
Department h+ hv . urance that the iippli
cant IS perlorming "cod e ealoriL ' mi. ' nl" h+f
a state JepailnK ' nt i-vf agency:
(-3^ complete ' , '. hurt coiu '. e - j L . pecilied by the
BcKud e+ e qui' . dl e nt ctuui i e ' j appro' < ed by
the Board Itho ' ie exempted from exam
ination by G^ 113 151.13(f) mwAr have
paosing grade eft r . hort coursQfi|;
f^ makes a paosing grade &ft a ' ■ vrittan exam
ination adminiotorod by the Board [ftet
required »f those oxomptod from e xam
ination by G.^ 113 151.13(f)|;
(4) possesses a standard certificate as a buUd
iftg inspector; a plumbing inspector; a
mechanical insp e ctor; ef a» electrical ifi-
spoctor; aft4
(4) provides documentation that he poooossoo
Cr TTTTTTTTTTTTTTT CTT cT rTTT^TT TT^TTTTCT C^TTItTTTTTTTrT yTTT
equival e nt approved by the Board) aft4
has ha4 at least ese continuous year's e«-
porionce sup e n'ising inspections fof the
stat e , a e+tyr ef a county insp e ction de-
partm e nt.
(4^ Building Inspector, I evel ir A standard
certificate, building inspector, I e' l ol 47 shall be
issued te afty applicant vrhe- meets att ef the gh-
tefia f4-h (^ (^ aw^ (4^ i» this Paragraph:
f44 pro' . ides c e il ilicat ion by a eity ep county
manager ef clerk that the applicant is
p e rfomiing "code enforcement" as defined
by GtSt M3 151.1S(a)(3) as aft employe e
ef that local go' . ernment ef certification
by the head ef the I'ngineer aft4 Building
Codes Division ef the North Carolina
Department ef Insuranc e that he is pet^
forming "code enforcement" fof a state
departm e nt ef agency;
completes short cours e s specified by the
Board ef equisalent cours e s appro' . ed by
the Board |thoso exempt e d from exam
ination by Gr^ I 13 151.13(f) must have
passing grad e eft -. hort courses);
makes a passing grad e eft a i i vritten e xam
f^
f^
ination administered by the Board fftot
required ef thos .e exempted from exam
ination by Gt^ 1 13 1^1.13(f)|; aft4
(4) pro' i ides documentation tbrtt he p(jss e ss e s
a minimum ef a high school education (ef
equi' i alent approved by the Board) i^^
e«e ef the alternative education aft4 es-
perience c[ual i lications fef aft equi' . alent
appro l i ed by the Board) listed b e low:
(A^ hav e completed at least e«e 'r*^^^ ef
technical ef trade school training ef aft
apprenticeship program ift building con
struction; ef
(fr^ have had at least one half ) ears' work
under direct '. uper' i ision ef a standard
certified building in '. i-'ector. f-evel h ff ef
H4 Vrtth a supporting lett e r from such s«-
per'i isor; ef
fC4 have a Ncrlli Carolina licen ^.e as a
building contracttu" ' . vith limited licens e
(individuals ' . vhose liceni i e is eft inactive
1200
4:24 ISORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
status shall provid e dooumentation from
t+t# contractors' Roard); ef
yjLrj I lu. T W trisTT ctr IwilJjl CtHt? V trill Or L'liiiulli^
coiistRiotion ef general inspection QxpL ' ri
e no e working und e r » building contractor
with liinitod liconso m North Carolina; »f
(B^ havo boon oortifiod under y«* aet- as aft
olectrical insp e ctor It » mochanical ifi-
opootor It ef » plumbing insp e ctor \ - have
ha4 at leart e«e yeaf as ouch inopoctor,
afi4 hav e oomplotod at l e ast 60 contact
hours »f instruction *» building e©fi-
struction afi4 North Carolina building
codo coursoo approved by Ae Board; ef
fp) havo h«4 at- least twe- years' oxperienc e
as aft activ e principal t» a homo building
I f -\ >-> o 1 ■."> Vt •-■ .-1 •-» ♦ 1 . "!■-» ft 1 1 1 : i-y j^ .^ ji t 1 »i I 1 .-> 1 1 t- 1 -.-f-i «-i~
1 TJ 7 I lU T V. rTTTO lit rCTTTTT I T' I.' L^MlllIILI'Jl.lJ T l-UI J
e xperience Ln! . pecting constaiction ef
dwellings aft4 similar sit'.ed structures fef
a eity ef county; ef
ft4^ ha' i o had at l e ast two years' oxporionce
as a subcontractor ift t4*e building trades
e* ' I ' l 'orlc » building con ii truction under
t t~i ^ ' ' ■ * f. .n-l ' 1 L - 1 J- 1 ^^ J -1 f -1 ^^ / -1 ^'t^ , ^ I~l I l i 1 . I . t «- l l ; l-n-y Vl '1 f
at least thieo years' exporiencQ if* tjae
building busin e ss.
(e^ Building Inspector, Level i+r A standard
cortiricato, building inspector, I-O' i ol Hr shall be
issued te- aftv applicant V i ho meets aU &f the 6«-
tefW: f44T f^ (tH aft4 (-H Ht this Paragraph:
f44 provides c e ilification by a eity e* county
manager t>F cleric that the applicant is
by G-:^. To 151.S(a)(j t ) as aft e mploy ee
ef thitt local gosenimont ef certification
by the head »f the lingineering aft4
Building Codes Di' i ision ©f the Noilh
Carolina Department »f Insurance that
he is performing "code enforcement" f&f
a state department «+ agency;
{¥f completes short coursoo specified by the
Board »f equivalent cours i os approved by
the Board |those e xempt e d from exam
ination by (}.S. 1 IJ 151 . LJ(f) must have
passing giade eft short cuurses|;
(4^ makoo a pasr . ing grail e eft written oxam
Illation a 1.1 ministered by the Board fftet
recniiiecl ef those exempted from exam
mation by Qr^ M3 151.13(01; a«*t
f-14 pro' i ide i ' . documentati(m that he p()osesses
a minimum ef a higli ^ i cliool e ducation fef
e quivalent a|">proved by the Board) im^
efte ef the allernati' . e education aft4 e^t-
perience qualifications fet aft equivalent
approved by the Board) listed below:
fA^ be a North Carolina liconsod engineer
whose oxporionco has ftot buon ift the de-
si^ &f inspection »f building! . ; e*
(ft} hav e completed at least tvre- years ef
technical ef university training ift the fieki
ef eivil e ngin e ering bf building con
otruction technology e* aft approved
four y e ar non t e chnical degree aft4 ha4 at
least twe years ef design, in i. tallation ef
inspection oxporienoo worlcing under a
c e rtifi e d building inspector H- Bf J-Hr a h-
c e ns e d engineer, ef a hconsod building
contractor having at least intermediate li-
conoo; e?
(€^ hav e boon c e rtifi e d under this aet as a
plumbing iiT . pector Hr a mechanical ift-
sp e ctor Ht ef aft electrical inspector Hr
l^^^^^^i 1^^^^^ ^^t ^^^^^^^ ^l^j-^^^ ^^^^^-^ '-j J."* r^i » ^^ V-n 1 r-\
^^T^^^w ^^t^^r t^t ^^^^^^T ^^^^^^^7 ^^^t^^^ LX^ ij^^^TT rx^^
opoctor, aft4 have completed at l e ast on e
half yeaf ef building construction
technology aft4 North Carolina building
code courses approved by the Board; e+
(©^ have a licenoo as a building contractor
V i ith experience ift medium SiT^e buildings
with- limited ef intermediate hcens e (Indi
viduals s' . hose lic e ns e is eft- inactiv e status
shall prosido documentation from the
contractors' Board); e+
lation ef inspection exp e ri e nc e working
undor direct supersision ef a certified
building insp e ctor -H- e* -144 ef a building
contractor with intemiediate license i»
North Carolina with a supporting letter
from !. uch supervisor; &f
fp^ have had at least fo«f )ears' experi e nc e
inr . pecting con '. truction ef medium suiod
buildings fevf a eity ef county i» North
Carolina und e r a jeb description v i hich
contains education aft4 experience »-
quirem e nts equivalent te- afty ef thos e
abo' i o; et
{G^ have been certified und e r this aet as a
building inspector h bas e had- at least
three years' experience approving plans
aftd making inspections as such mspector,
aft4 have completed at least one half yeaf
ef building constructicm technology
courses approved by the Board.
ff^ Building inspector, -hevel H-h A standard
certificate, building inspector, h e ', e l 11+ shall be
issued te- afty applicant who meet! , ail ef the eri-
tefia f+ir (^ f^ a«4 f4^ i* this Paragraph:
(4-)- provides certification by a eity e+ county
manager e* clerk that the applicant is
performing "code enforcem e nt" as defined
by GtSrr 1 13 151.y . (a)(.^) as aft employ ee
ef that local uo'iomment e? certification
4:24 NORTH CAROLINA REGISTER March 15, 1990
1201
PROPOSED RULES
hf the h e ad »f the Onginooring afi4
Building Codoo Divi ' jion ef t4*e North
Carolina Dopartmont %i Insuranc e that
applicant is p e rforming "cod e e nforce
ment" fop » stat e d e partment ©f ag e ncy;
(3^ complotoo short cours e s opucifiod h^ the
Board ef oquivalont courses approved hy
the Board [thooo oxomptod from oxam
ination hy GrS^ 1 13 151.13(f) must havo
passing grado ew- short coursus|;
(4) makos a passing grado »» a written osam
ination administorod hy the Board ffte4-
roquirod »f those exempted from exam
ination hf fe^ 1 13 151.13(0|; aft4
(4) provid e s documentation that he pooc i ossos
equivalent approved by the Board) afi4
»fte »f the alternative education aft4 es-
periencQ qualifications fe* a» equivalent
approved hy the Board) listed below:
fA^ he a North Carolina licens e d engineer
»F architect whoso pre professional quali
fication experience aft4 professional prac
tiee was ht the architectural, structural, Bf
fife protection design ©f inspection ef
buildings aft4 wh© cuiTontly is specialiidng
ift architecture ef eiv+i &f fife protection
ongineoriiig; ef
fB4 have completed at least fe+tf >oars ef
technical »f university training i» the fiei4
&i efv4 e* archit e ctural e ngine e ring awd
have ha4 at least »fte yeaf ef building
oonstiTjotion »f inspection oxporienco
working under a c e rtified building inspec
t&fr levei -H+r a North Carolina licensed
unlimited building contractor, at least at
the levei ef supervisor Bf journe)man
building trad e s craftsman level aft4 wt fe-
spon i. ible charge »f a v44e variety ©f typos
aft4 larger si^es ©f building projects; ©f
fG) hav e completed at least tw©- years ©f
technical ©f university training i» the fiehi
©f eivii ©F architectural engineering a«4
have ha4 at least three years ©f building
constiTiction, design, ©f inspection experi
ence ' . ' . drkiiig under a certified building
inspector Wr a Ijceniied ci' i il ©f fi4e pro
tection e ngineer, ©f aft unlimited licensed
building contractor, vsith at least ©se yeaf
ift respou 'i ible charge ©f a wid e 'lariety ©f
types aft4 larger siz e s »f building^ . ; ©f
(-R^ have been certified under this aet as a
mechanical insp e ctor H47 a plumbmg tft-
speclor 4Ht ©f a» electrical in i. pector U^
1 ill T s? rTTTTT If r iiril ,'i rTTTTn T pill ? ui 't J.I Li C 1 1 i_ crl 1 1
fie4 inspector, aft4 have completed at least
©fte veaf ©f building constmction tech
nology^ cours e s approved by the Board;
©f
, f^ have a current liconso as a building
©f larg e sige buildings witfe unhmited h-
c e nse ift North Carolina (Individuals
V i 'hoso licens e is ©ft inactive status shall
provide docum e ntation from the contrac
tofs^ Board); ©f
i^^^i t-i ■-» I r/-\ Vi -~i H -tt 1^^^^^ T^i»^£ \T^^^^c .-1 r .— j-^ r\
\i. J I lu. ? \j I IU.U III 11-u.Di r^mr t \-u.r^ l/i (-i_'ii
under direct supervision ©f a certified
building insp e ctor W ©f a building con
tractor witb unlimited liconso ift North
Carolina, at l e ast tvr© y e ars ©f which have
been performed ift responsible charge ©f a
variety ©f typos aft4 larger siaos ©f build
iftgs Vrith- a supporting letter from such
suponisor; ©f
{G^ have boon certified und e r this aet as
building inspector ih hav e had at l e ast
fottf years' experience approving plans
afi4 making inspections, aft4 have com
plotod at l e ast ©«e yeaf building con
struction technology courses approv e d by
the Board; ©f
(11^ I 111 T \J I ITlvl til 1 l,U. J l 1 1 T U \~\ ' 1 1 1 H I UV \.l-J T VTJ-1. J
experience insp e cting the construction ©f
a svid e ' ■ uriety aft4 typ e s ©f larger si/.os ©f
buildings working f©f a eity ©f county ift
North Carolina under a }©fe description
which contains education aft4 oxporienco
requirements ec|uivalont t© afty ©f thoso
abov e .
(g^ Plumbing Inspector, Lev e l h A standard
certifioato, plumbing inspector, level 47 shall he
issu e d t© afty applicant who meets ah- ©f the efi-
tena (4-)7 f^ fri^ aft4 f4> ift this Paragiaph:
("I") provid e s certification by a eity ©f county
manager ©f clerk that the applicant is
performing "code enforcement" as defined
by Gt^ M3 151.8(a)(3) as aft employee
©f that local government ©f certification
by the h e ad ©f the rngineering aft4
Building Codes Di' i ision ©t the North
Carolina Department ©f Insurance that
the applicant is peifonning "code eft-
forcemont" fof a stat e departm e nt ©f
agency;
compl e tes short cours e s specified by tfee
board ©f equi' i al e nt cours e s approved by
the board [thos e e x e mpt e d i\om examina
ti©ft \^ G^ M3 151.13(f) Fftttst have
passuig giade ©ft short courses|:
makes a pas ;. ing grad e ©» a wntten exam
ination administered by the board fft©t
required ©f those exempted fiom ejuim
mation by G.4;^ 1 13 151.13(0]; m^
(^
m
1202
4:24 NORTH CAROLIl\A REGISTER March 15, 1990
PROPOSED RULES
(4) providof f documentation that- be por . r . or i r i os
» minimum »f a high r . ohool education
L ' xpL ' ri e nu B quulifioations fe* »» equis'ul e nt
approved hf t4w hoard) li '. tt ' d b f low:
(tV)- havL > compk ' tL ' d »♦• Icui i t »ftt» year ef
technical ef trad e f . chool training (*f af»-
prcnticoi i hip program ift plumbing; ef
I 13 \ li^pliii '1 i 1 .1 •-» t~ t ■•-\ «-i , > 1-1 ■ I 1 T 1 -, l-l f ^~ t 1 ■ j-i »■ 1 ■- ]»j^^^l£
^^^^j T^TT^^^ C^t ^^^^^^t \^T^^^^T^^^^T ^^^^^T^^T ^^^^^^^^ ^^^^^^^^r
direct ' / . uponiL i ion ef L i lundard cuitLriud
plumbing ini . pL'ctor, 1 ool ir H evf i44- with
» i . upporting lett e r from such sup e rvisor;
»f
fG^ havo a North Carolina lioonfio as a
plumbing contractor (indis ' iduah i whose
licL'n !' L ' Hi t-vft- inactiv e status r . hall provide
documentation from the contractors'
board); «+
ff^ have ha4 at least eae year t»f plumbing
installati(m ef plumbing insp e ction enpo
rienc e working under a plumbing con
tractor m North Carolina; Bf
(B^ have been ceilifiod under t+t+s aet- as a
building inspector 4-r a«- electrical inspector
ty ef a mechanical inspector \i hav e ha4
at- least e«e veaf as such inspector: aft4
have completed at- least ^ contact hours
»f instruction h+ plumb i ng conr . ti-uction
aftd North Carolina building code courses
approved by- t4+e board; »f
(4-^ have h«4 at- leai . t twe- years' experience
ift plumbing installation; e*
{G^ have hi^ at least tw-e continuous years'
experience Lnspecting plumbing instaUa
tions t*f dwelling ' . , at+d similar s . i/.ed struo
tures fe* a eity ef county.
fh) Plumbing Inspector, 1 evel 14t A standard
ceildlcato, plumbing inspector, L evel H- shall be
iss i ued to- a«¥ applicant vv ho meets att ef the eri-
teria H-h (-3^ f:i^ aH4 f+) » th*^ Paragraph:
(-1-^ provides ceilification by a etty »f county
manager »f clerk ttiat the aj^plicant »
performing "code entorcemenl" a^. defin e d
by Gt^ 1 l-"i 15I.V i (a)(3) a* a«- employee
ef tbat local government e* cert i fication
by the head tvf the bngineering a«4
Building Codes Division &f the North
Carolina Department rf Insurance that
t]^ applicant ts periorming "code ew-
forcement" f»f a state department e*
agency;
fi) completes short courses specified by the
board Bf equivalent courses approved by
the board [those e xempt e d from examina
t+e«- by G-Sv 1 1.^ 15I.l.'t(f) Hwst have
passing grad e eft short cour !i es i |;
(4) mak e s a passing gi'ade eft a written exam
mation administered by tbe board [ftet
required »f thos e exempted from oxam
ination by GtJVt 11,1 151.1.^01; aft4
(4) provides documentation that be poss ie ss e s
Cr ITTTTTTTTTTrTTT I ' 1 CI III IL,1 T Llt,lIl".'I CnTTTTTmTTTT ^ l ' I
equivalent approved by the board) aftd
»fte ef the alternativ e education iifvi e«-
perience qualifications f»f aft e quival e nt
approved by the board) listed below:
(-A^ be a North Carolina licensed engineer
whose experience ha* ft»t been ift the de-
sigft H+ ins . p e cl i on f4' buildings; e*
(4^ have completed at leas i t two- y e ars ef
technical »f university training ift the field
ef m e chanical engineering ef aft approv e d
four y e ar n(m t e chnical d e gr ee aft4 hav e
ba4 at l e a ;. t tw+v y e ars o+" d e sign, iu '. talla
ti(.)n, »f iu ' ipection e xperienc e working
under a certif i ed plumbing inspector -H- «*
44+7 » licensed engineer, »f a licen ; ied
plumbing contractor; e*
f4^ have been certified under thi* aet as a
building in '. pectc^r -Hr a mechanical ift-
spector Wt Of aft electrical inspector H-7
have ha4 at least three years' exp e rience
a« such inspector: aft4 hav e completed at
l e ast one half yeaf €vf plumbing c(^n
struction technology aft4 North Carolina
build i ng code cours e s approved by the
board; Bf
fO^ hav e a licens e as a plumbing contractor
with exp e ri e nc e ift m e dium s«e4 buildings
(individuals w'hos e lic e ns e is o« inactive
status shall provide documentation trtmi
the contractoni' board); of
(4-^- have ha4 at least three years of in -. tal
lation Of inspection experience w\)rking
under direct supervi -i ion of a c e rtifi e d
plumbing in '^ pector H of -14+ ot a plumb
iftg contractor ift North Carolina with a
supporting letter trom such ■ iupervisor; of
(4^ have ha4 at least fo«f years' experience
inspecting plumbing instaUations of Hie-
dium sii'.ed buildings fof a «4y of county
ift North Carolinii under a fob des . cription
which contains education aft4 experience
requirements equivalent to »b^ of those
above; of
fG)- hav e been certified under this aet as
plumbing inspector h have had- at l e ast
three year;/ experience approv ing plans
»i^ making iu '. pections as such m '^ pector;
aft4 hav e compl e t e d at l e ast on e half yeaf
of plumbing const met ion courses ap-
proved by the board.
(+f Plumbing Inspector. 1 ev el +++t A standard
certificate, plumbing inspector, I ev el +++t S i hall
be issued to afty applicant who meets aff of the
criteria f+-h f^ (^ aft4 f4-) m th+s Paragraph:
4:24 NORTH CAROLINA REGISTER March 15, 1990
1203
PROPOSED RULES
f+) pros'ideo oartifioation by a- eity &f county
munagur »f dork tbrri- the applicant is
r^^^TTTrTTTTTTT^ T,^TTIV Ul IIT^I ^_^ I I I^T H CC^ LH^I II IVU
^r' G.S. M3 151.8(a)(3) as a** omployoo
»f Aat- local govommont »f cortification
by tbe huad »f tbe Enginooring aft4
Building Codos Division »f tb« North
Carolina Dopartmont ei Inourance tbat-
the applicant is porfonrting "codo »«-
forcomont" fof a stat e department e*
agency;
(5^ coinpl e t e e . short coursoo spt ' oili e d by Ae
board et oqui' . cdt'nt coursi's approsod by
tbe board |thc)SL' uxomptt ' d from cxamina
t4o» by GtSt 113 151.13(1) HHist- haw
passing giado »«■ short courson|;
(^ makoo a passing giado &«■ a ' . s-ritton oxam
ination administu'rod by tbt* board f»»4-
requir e d ef thos e oxomptud from exam
ination by O^ M3 151.13(f)|; aR4
(4^ providoo documentation tba4- be posoossoo
Cr rTTTTTTTTTOTTT TTT CT III Jl^l 1 Ln_ I IV V..' I ^_ULH_U11U1I yTTr
equival e nt approsod by the board) aft4
tM+e of t4+e altornatiso education a«4 es-
perienoe qualifications fef as- equivalent
approved by tbe board) listed below:
(A^ be a North Carolina lic e ns e d engineer
whoso pre professional qualification e?i-
perience mvA professional practice was ift
tbe plumbing design of inspection e4^
building ' . . ȴr<^ ssho currently is specializing
ift m e chanical engineering: ef
(4^ have completed at- least fottf years ef
technical t+f university training ift tbe fit*i4
»f m e chanic(d engineering ^b^ hav e ba4
■1 ♦ Ij^ii^^ ."t r^ n 1 - , A ^ «• /-I t >-vlll>->-\l~n»Ti-i .-• j-^ »T n- t «-T 1 , ' t 1 ."1 r-\
e* inspection experience v . orking under a
certified plumbing inspector. Los el 4447 a
North Carolina licensed mechanical engi
neer, ef a North Carolina licensed
plumbing contractor, in -. talling plumbing
ift larger sized buildingr i , at- least at- t+H*
1 1 t' ■ J » I r^ r 1-1 1 1-^ , n-1 ■ < L /1 1- ■-> »- ijti ifft.n ■»->i'in t-n i 1 1 ■ i i ti i »
(V T V r TTT LT 1, r I 'V I I I . H ' I ^rr jlJtll IITTy 111 LI II I. ' LI I IVl 1 1 1 J^
trades craftsman level aH4 ift responsible
charge H4^a wide ' ■ anety ej types aft4 larger
sii'O ' .i ef building projects: Bf
fGf ha^ ie completed at- least tw«- years rf
technical e* university training ift tbe l+eW
»f mechanical engineering im4 base ba4
at- least three years »f plumbing con
struction. design, in '. lallation. Hf ift-
'. pection expeiience ' . sorking under a
c e rtified plumbing inspector -W-;- a liceu ' . i od
mechanical engineer, ef a licens . ed
plumbing contractor. iiT ' lalling plumbing
ift larger sized buildings, wilh at- least t+fte
ye»f ift r e sponsible charge (4f a wide
ety »f typos aft4 larger sizes ef building
projects; ©f
(©) havo boon c e rtifi e d und e r this aet- as a
mechanical inspector \i\-; a building ift-
spoctor 1447 e* »«• e l e ctrical insp e ctor -^Hf
irui TT7 1 luvj ur i l, u j i i \) lli i l,u.i j cttt rrrrcTT i^' lj i m
»fte yea* »f plumbing construction tech
nology courses approved by tbe board; e*
(4+^ have a current license as a plumbing
contractor wttb licens e ift North Carolina
witb exporienco ift plumbing systems »f
large buildings (Individuals vs ' hos e licens e
is »ft inactiso status shall provide doc
um e ntation from tbe contractors' board);
I t l\ V-t -W ■ .■L 1-1 ■ ■ J 1 ■ t * 1 , \ •! .'* T i--» 1 IT- t ■■ H. «-l- r~iL T J> J- 1 »-t
\T J I rtTT \J rTTTTT CTT rCTTTTT rTTTIT T VTI I J CT tT 'IT
under direct supenii . ion ef a certified
plumbing inspector H4 »f a plumbing
contractor with a license ift North Caro
I < «"t ■ t t » < ■ A^ 1 ■ •\-t n- .•it t 1 - 1-1 1 I- It !"'■■'■■> 1~. , t Jt-n tiLij-^
1 1 1 1 11 , nr^^ J V-Tii J rTT ti iiil.ii i ili t kj i "i- \_ i i i. ■ l. i
fonned ift responsible charge »f a variety
t*f typos aft4 larg e r siz e s t4" building pfe-
jects V i ith a supporting l e tter from s . uch
supervisor: »f
fG^ hav e been certified under tbis aet- as
plumbing inspector -Hr have ba4 at- least
t*H*f years' experi e nc e approving plans
aft4 making in '. pections: aft4 have com
pl e t e d at least efte year plumbing con
ji truction technology cour ' ies approved by
tbe board; b*
(44-^ have ba4 at least five continuous years'
experience iu '. pecting tbe plumbing sys-
t e ms ef a wide variety aft4 typ e s ef larger
r . iz e s ef buildings working fof a eity Bf-
coiinty m North Carolina under a }»b 4e-
l icription which contains education aft4
exporienco requirements equivalent te- afty
Bi thos e above.
(j4 Mechanical bT . pector, I evel -b A- standard
certificate, mechanical iiTipector, 1 ev el -b shall be
issu e d to- afty applicant who meets ail- »f tbe eri-
teria (4^7 (^ (3) aft4 (4^ ift tbis Paragraph:
f44 provides cortification by a eity t+F county
manager ef clerk tbat tbe applicant is
perfoiTning 'Yxul e enforcement" as d e fin e d
by Grr^T 113 151.S(a)(3) as a» employee
»f tbat local government ©f certification
by tbe head »f tbe I'ligineering aft4
Building Code '. Div ision t4 tbe North
Carolina Deiiartm e nt o+ liT i Uiance tbat
tbe applicant » peiiorimng "codo eft-
forcement". fo* a state department ef
ag e ncy:
(4^ complet e s short courses specified by tbe
board m- equival e nt courses approved by
1204
4:24 NORTH CAROLINA REGISTER Match 15, 1990
PROPOSED RULES
^r^ board [thos e e xempt e d from exumina
tieft by Gt^ M3 151.13(f) Hwst hm%
pa'ir . ing grad e »ft nhort oouri i uu];
(4^ mak e s a passing grado »» a ' ■ ' . ritton e xam
ination administorod by tbe board [«©*■
r e quir e d ©f thoso oxomptod from oxam
ination by G.^ M3 151.1.1(01; aft4
f4) pros'ides dooumontation t4w*t- be possoooos
oquisalent appro' i cd by tbe board) aft4
e«e ef Ae altomativo oduoation afi4 ejt-
porionoo qualifications f»f aft oquivalont
approved by t4» board) Listed bolow:
fAr^ havQ complotod at least &f^ ysaf ©f
technical &f trade school training ef ap-
prontioonhip program » building tfte-
chanical oquipmont; e*
fft) haso at- least one half years' V i ork undor
direct supeP i ision e4^ standard certifi e d
mechanical inspector, lesel J7 H e* H4-
Mritb a supporting letter from such super
' ■ isor; ©f
(G^ hav e a North Carolina license as a me-
chanical installation »f inspection experi
oncL< ' . ' l orldng undor a mechanical
contractor ' . sith a i44 license ift North
Carolina; ef
(©} have been certified undor t4M* aet- as a
building inspector h a plumbing inspector
•I7 ©f aft electrical inspector it ba¥t» ba4 a4-
l e ast ©ft» y<*af as such msp e ctor; aft4 have
complotod at least 40 contact hours ©f ift-
stiTiction ift mechaniccJ construction aft4
North Carolina building code courses ap-
proi i od by tb*» board; ©f
(E^ havo h^ at least tw© y oars' exporionco
i» mechanical installation; ©f
fp) ha* ! e ba4 at least tw©- continuous year's
experience insp e cting m e chanical in ^. talla
tions ©f dwoUings aft4 similar si/.ed stnic
tur e s fe* a eity ©f county inspection
department.
fie^ Mechanical hispeclor, L e ' ie l Hr A- standard
ceilificate, mechanical inspector, I ev el 447 shall
be issued t© awy applicant v i ho meets aU- ©f tbe
criteria f4-h f3>7 (4f aft4 f+) ift tbw Paragraph:
f^^ prosidos certification by a etty ©f county
manager ©f clerk that tbe applicant is
performing "code enforcement" as defined
by G.S. 1 13 151.S;(a)(3) as aft employee
©f tbat local gosernment »f certification
by the liead ©f tbe Fngineering ft«4
Building Codes Divi '. ion e+ tb^* > . "oilh
Carolina Department ©f Insurance tbat
tb» applicant is p e iiorming "code eft-
forcement" fof a stLite depailinent ©f
agono)';
(3) completes short courses sp e cifi e d by tbe
board ©f equival e nt cours e s approved by
tbe board [thoso exempted from e xamina
tioft by Gt^ M3 151.13(f) »H*st haw
passing grado ©ft short courses];
f^ m alios a passing grado ©» a written e xam
ination administ e r e d by tbe board [ft©t
required ©f those exempted from exam
ination by G.S. M3 151 13(f)[; aft4
{4rf provides documentation tbat be possoooos
equivalent approved by tbe board) aft4
©ft© ©f tb© altemati' . e education aft4 es-
perienco qualifications f©f aft equi' i 'alent
approved by tbe board) listed below:
fA^ be a North Carolina registered onginoor
©f arcliitect whos e exporionco bas ftot
been ift the design ©f ins . pection ©f build
fS) have complet e d at least tvr© years ©f
tochnioal ©f university training ift the field
©f mechanical engineering e* aft approved
four year non technical degree aft4 base
ba4 at least t-w©- years ©t design, installa
tion, inspection experience Vforldng under
a cortitied mechanical inspector 14 ©f iH-;
a licensed onginoor, ©f a licens e d m e chan
ieal contractor having at least a 1+2 ©f 144
License; ©f
fG^ have been certified under this aet as a
building inspector 14t a plumbing inspoc
t©f 147 ©F aft electrical inspector Ht have
ba4 at least three years' experi e nc e as such
inspector; aft4 bave completed at least
one half )ear ©f mechanical construction
technology aft4 North Carolina building
cod e courses approved by tbe board; ©f
f&i have a lic e ns e as a mechanical con
tractor with experi e nc e » medium sb^
buildings w4tb- a bb3 afi4 144 license (Indi
viduals ' i shose License is ©ft inactive status
shall pro' i ide documentation from tbe
contractor^ i ' board); ©f
(4i^ have ba4 at least thr ee years ©f instal
latiun ©F inspection experience ' ■ sorkmg
under direct sup en i si on ©f a certified hw-
chanical inspector 14 ©f 144 ©f a mechan
ieal contractor v . ith 144 afhi 144 license ift
North Carolina wfA a supporting letter
from S i uch super' i isor; ©f
(4^ hav e been certified under this aet as
mechanical inspector I-;- have ba4 at least
three years' experience appro' . mg plans
afhi making in '. pections as such inspector;
aft4 hav e completed at least one half yeaF
©4 mechanical coiV i truction technology
courses app lined by the board; ©f
4:24 NORTH CAROLINA REGISTER March 15, 1990
1205
PROPOSED RULES
inspecting m e chanical inr f tallationc i ei ««e-
dium sii'.ed buildingo fof » etty »* county
ift North Carolina undor a j&fe dascript i on
which contains e quival e nt education afi4
oxporionco roquiromonts oqui' . alont odu
cation a«4 oxporionco roquiromonto
oquivalont to- any &f thono abovo.
fl^ Mechanical Inopootor, L <? v e l Wr A standard
certificat e , mechanical innpoctor, Ixivol H-l- shall
b« issued to aoy appUoant wW moots all sf the
criteria f4^ (3^ f^ aft4 (4^ m Ai* Paragraph:
(4^ pro' i idou certification hf a eity e* county
manager »f olurk tfeat- tfee applicant i«
^L Q^ M3 151.8(a)(3) as aft omployoo
»f thrtt- local gosenmiont ef certifioation
by the head ef tl+e luigineoring aft4
Building Codes Division ef the North
Carolina Department e4" Insuranco tbat-
tfee applicant is p e rfonning "cod e eft-
forcomont" fof a otato dopartmont »f
agency;
f3) completes short courses specified by tbe
board ef equivalent cours e s approved by
tbe board [those exempted from exumina
U»ft by Gt^ M3 151.13(f) Hwwt b«t¥«
passing grade eft short courses);
(5) makes a passing grade &ft a written exam
ination administered by tbe board [f¥^
required b( those exempted from exam
ination by Gr^ M3 151.13(01; aft4
(4) provides documentation tbat- }» possoosoo
a minimum ef a high school education fef
e quivalent approv e d by tb# board) aR4
»fte (4 the alternative education aft4 es-
perionce qualifications fef aft equivalent
approved by tbe board) listed b e low:
(A^ b» a North Carolina licensed engineor
whos e pro professional qualifications, es-
perienoe aft4 professional practice ¥r»s tft
tlw mechanical design e* inspection »f
buildings imd vsho cunently is spocialiiiing
ift mechanical engineering; ef
(4^ haso completed at- least fo+tf years »f
technical Bf univer '. ity training i» tbe 6e44
^ mechanical construction engineering
■^ n ."1 It ■-» T T-,-» t-i "-i I 1 ■ 1 1 1 , -1 ■-!■-- + ,-\ fi ,-k t -J 1 --1 »■ i-» r t-»-i i-v
ohanical construction &f insp e ction oxpe
rience working under a certified
mechanical inspector. I es el H+t a North
Carolina licensed mechanical engine e r, e*
a North Carolina lic e nsed mechanical
contractor '■ s ilh bH-r 144 144 liceu '. e, at
least at- tb«» lo' i oi »f sup e rvisor Bf journey
man building trades craltsman les e l aft4
ift responsible charge »f ' ■ vid e vari e ty t+f
typos afi4 larger saes ef building projects;
. {G^ havQ completed at- loast twft yoaro ef
technical »f university training j» tbe 6#14
e( mochcmical construction engineering
chanioal construction, design, et- m-
spection e xp e ri e nc e working und e r a
c e rtifi e d m e chanical inspector Hi-; a li-
censod mechanical engineer, ef a H4t J+St
m lic e nsed m e chanical contractor, with
at- loast »«» y«H= ift responsible charge »f
a wide ' ■ arioty »f types aft4 larger sizes ef
buildings; ©f
(©)• have boon c e rtifi e d und e r t4*is aet- as a
building inspector H4t a plumbing insp e c
tof Uh ©* aft electrical in -. p e ctor H4f have
ba4 at- loast four years' experi e nce as such
certified inspector; aft4 ha' i o completed at-
least »«e yeaf ef mechanical construction
technology courses approv e d by tb«
board; ftf
ffe) bave a current license as a mechanical
ftf largo swe buildings >vith H+r 444t aft4
144 license tft North Carolina (Individuals
whoso license is eft inactive status shall
provid e docum e ntation from tb« contrac
tors' board); e*
under direct supersision et a certified »**»-
chanical inspector H4 t+f a mechanical
f/^A rt f f-l J-' t /-^ «- 1 1 ■! f 1-1 111 1 1 f • t T-» ■■ I lit li.'/in •T'^-i ■ »->
C^TTTTTTT^TTTr TTTTTT 111, I I _ , cTTTO TTTT TT^^mTT^ 1_1 1.
North Carolina, at- l e ast twe- y e ars ef
which have been perfonn e d ift re '. ponsiblo
charge »f a variety ef types aft4 larger sizes
&f buildings with a supporting letter from
such supervisor; ef
(G) hav e boon c e rtifi e d undor tb+s aet as
mechanical inspector bb hav e bad at l e ast
fe+if years' experience approving plans
aft4 making inspections; aft4 have com
pleted at least »«** year mechanical con
stRiction technology courses approved by
tbe board; e*
(44j have ba4 at leas . t tw* continuous ) ears'
experience inspecting tbe m e chanical sys-
tems ef a wide vanety aftd types ef larger
5 Laos ef buildings working fof a eity Bf
county under a jeb description which
contains education a«4 experienc e Fe-
qujrements equivalent te- afty ef thoso
above.
f«*^ Electrical Inspecttir, 1 evel ir A standard
certificate, electrical in '^ pector, I evel b- shall be
ii i sued te- afty applicant who meets . aU et tbe e«-
t«fta (4^7 (^ (^ aft4 (4^ i» tbts I'arugiaph:
1206
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
(4^ provid e s c e rtirication hf a eity »f county
manag e r ©f clork Aat the applicant is
IJUl lUI IIUIIU^ *J^^U.U L.'l in./ 1 V-^ 1 1 l\j\ II U^ UV III Il.'U
by Gt^ M3 151.8(a)(3) as aa employ e o
ef that- local govommont e+ c e rtification
by tbe h e ad e4^ the F.nginooring atwi
Building CodoG Divioion »f the North
Carolina D e partment ef Inoumnco that
the applicant is perfonning "codo bh-
forc e mont" fof a state department e*
agency;
f5^ completes short cours e s specified hy the
board ©f e qui' i -alent courses approved by
the board [those exempted from examina
tieft by GrSr M3 151.13(f) Hwst- have
passing grade »» short courses);
(4) makes a passing grade &ft a written exam
ination administered by the board [ftet-
r e quired &f those exempted from e xam
ination by Gt§t M3 151.13(f)|: afl4
{A) prosidos documentation that he possossoo
cr rTTTrrrTTTnTTT Ct CT 1 I1Z-J.T J*_ i l\J \J I \JKS \S\J\X\. i\JH \\Jl
oqui' i alent approved by the board) aad
efte ef the alternative education aft4 es-
perience qualifications f&f aft equivalent
approved by the board) listed below:
(A) have completed at l e ast ©fte yeaf ef
technical m- trade school training ef ap-
prenticeship program i» electrical instaUa
tieft aftd codes; ef
(ft) shall hav e at l e ast one half year's work
under direct suponrision ef standard c e rti
fie4 electrical inspector, Level ir H ef itf
with a supporting letter from such super
visor; e*
(€) have a North Carolina license as aft
electrical contractor with limited restricted
(on e family d' l ' . elling) e* limited license
(Individuals whos e license is »ft inactive
status shall provide documentation from
the contractors' board); Bf
f©) have ha4 at least efte year ef electrical
mstallation e* inspection e xp e rience
working under aft electrical contractor
with hmited license ift North Carolina; »f
(6) have been certified under this aet as a
building inspector h a plumbing inspector
J B* a mechanical inspector h have ha4 at
least efte yeaf as such mspector; aft4 have
completed at least %^ contact hours ef ift-
struction ift electrical installation aft4
codes aft4 North Carolina building
courses approved by the board; &f
fp) have at least twe \ ears' experience ift
electrical installations; Bf
(G) have a current license f^^ as a county
electrical inspector issued by the Com
mission e r »f Insurance pursuant %» G.S.
153A 351; &f
(4+) hav e at l e ast twe^ continuous y e ar's e^
porioncQ inspecting electrical installations
©f dwellings aft4 similar sii'.od structures
i^f- a eity e* county.
(ft) IJloctrical Inspector, Lcel th- A standard
certificate, electrical inspector, Lc i 'ol H7 shall be
issued y^ any applicant Vrho meets ali &f the 6«-
teria (+)7 (3)7 (t^ aft4 (4) ift this Paragraph:
(+) provid e s c e rtification by a eity »f county
manager ©f clerk that the applicant is
performing "codo enforcement" as defined
by G.S. M3 151.8(a)(3) as aft employee
©f that local go' i 'emm e nt ©f certification
by the h e ad ©f the Fngineoring afi4
Building Codes Division ©f the North
Carolina Department ©f Insurance that
the applicant is performing "cod e efl-
forcement" fof a stat e d e partment ©f
agency;
(3) completes short courses specified by the
board ©F equivalent courses approv e d by
the board [those exempted from e xamina
ti©ft by Gt^ M3 151.13(f) Hwst have
passing grade ©ft short courses);
(^ makes a passing grade ©ft a written e xam
ination administered by the board [ft©t
r e quired ©f those exempted from exam
ination by Gr^ 113 151.l3(f)|; aft4
(4) pro' i 'id e s documentation that he possesses
a minimum ©fa high school education (©f
equivalent approved by the board) afi4
©fte ©f the alternatii i o education aft4 eK-
perience qualifications (©f aft equivalent
approved by the board) listed below:
(A) be a North Carolina licensed engineer
whoso experience has ft©t been ift the de-
si^ ©F inspection ©f buildings; ©f
(ft^ have completed at least tw© y e ars ©f
tochnical ©f university training ift the fiel4
©f electrical engineering ©f a» approved
four year non technical degre e ^^ have
ha4 at l e ast tw© years ©f design , installa
tion, ©F inspection experience working
under a c e rtili e d electncal inspector H- ©f
H47 a licensed engineer, ©f a licensed elec
trical contractor basing at least aft inter
mediate lic e ns e ; ©f
(G) have been certified under this aet as a
building inspector Hr a plumbing inspec
t©f -Ht ©F a mechanical insp e ctor th- have
ha4 at least three years' experience as such
inspector: aftd have completed at least
one half yeaF ©f electrical cons i tmction
technology courses aftd North Carolina
building code cours e s approv e d by the
board; ©f
4:24 NORTH CAROLINA REGISTER March 15, 1990
1207
PROPOSED RULES
f©^ hav e a liconood a« aft olootrical con
tractor with Qxp e rianc e m modium s«e
buildingo witfe limited ©f interm e diat e k-
conr i o (Individuals whoso license is e» ift-
activo status shall provide documentation
from the contractor's board); _ef
(fe) have had at- least thre e y e ars ef instal
lation e* inspection oxporionco worldng
under dir e ct supervision »f a certified
contractor V i 'ith intermediate lioonoo ift
North Carolina wttfe a supporting l e tt e r
from ouch supervisor; Bf
fp^ hav e heiA at- least fettf year's experience
inspecting electrical installations ef Hie-
dium siix e d buildings fof a eity ef county
ift > . 'orth Carolina und e r a }et> description
which contains education afi4 experi e nc e
requirements e ciuival e nt te- afty- ef those
above; ef
(4+)- ha^ i o boon cortifiod under this aet as
el e ctrical insp e ctor h have ha4 at least
three years' experienc e approving plans
aft4 making inspoctions as such inspector;
afi4 hav e completed at least one half yeaf
e4^ electrical construction toclmology
courses approved by the board; »f
(44^ have a current license f4q-)- as a county
electrical inspector pursuant t& G.S.
153 A 351.
(e^ Electrical insp e ctor, Lovol -H-tr A standard
oortificate, electrical inspector, I e vel W\r; shall be
issued te- aay applicant who meets all- ef the eri-
teria (-l^T f3^ (^ a«*i Hi"* *+* Paragraph:
f4-> provid e s c e ilificution by a eity »f county
manag e r e* clerk that the apphcant is
performing "code enforcement" as defined
by Gt^i^t 113 151.S(a)(3) as a» employ ee
^ that local gosommont ef certification
by the head »f the bnginooring aft4
Building (jodes Division ef the North
Carolina Department ©f Insuranc e that
the applicant is performing "code eft-
forcement" fop a state department ef
agency;
fS)- completoo short coursos specified by the
board ©f equivalent courses approved by
the board | those exempted from examina
tie» by Gr^ 1 13 151.13(f) nwst h*ve
passing gnide eft short courses];
(4) makes a passing grade »ft a written exam
ination admini '. ter e d by the board (ftet
requir e d of these exempted from e xam
mation by Gr^ 1 13 151.13(f)|: aft4
pros ides documentation thttt he possesses
a minimum ef a high school education fe*
equi' i 'alent appro' i od by the board) aftd
ofte ef the allernati'ie educa - tion aft4 e^i-
H)
perience qualifications f©f aft e quival e nt
approved by the board) list e d b e low:
(A} be a North Carolina licens e d engineer
whoso pro professional qualification e«-
porionco aft4 professional practic e was ift
the electrical design Bf inspection ef
buildings aH4 who curr e ntly is opecialhting
ift electrical engineering; ©f
(©^ have completed at least fo»f years ©f
technical ©f university training ift the field
©f el e ctrical engineering aft4 have ha4 at
least ©fte yeaf ©f electrical construction ©f
inspection experienc e worlcing under a
certified electrical inspector. Level Hiy a
North Carolina licensed oloctrical engj
neer, a North Carolina licensed unlimited
electrical contractor, at least at the lovol
©f a supervisor ©f journeyman building
trades craftsman level aft4 ift r e sponsibl e
charge ©fa wide variety ©f types afid larger
sizes ©f buddings; ©f
fG) have been certified under this aet as a
mechanical inspector 4447 * plumbing ift-
spector 4447 »f a building inspector 4447
have had at least fettf ) ' ears' oxporionco as
such certified inspector; »t^ have com
plotod at least ©fte yeaf ©f oloctrical con
stmction technology coursos approved by
the board; ©f
(4?^ have a current Hconse as aft oloctrical
/■' /-\ f\ ^ r fi /•■♦ f^ T* 11 r< t 1^ 1 1 »T 1 1 m->-i « t , \,\ I 1 ; T 1 TT 1- ; 1 t r^ X ji «-t 1^
^^^^^^^^^^^^^^^i ^^TX^T W rrill 1 111 L^TJ III., ^ I I,., TV 111 1 ' \^J 1 I I L
Carolina (Individuals whoso license is ©ft
inactiv e status shall provide documenta
ti©ft from t4te contractor's board); ©f
( I _i' J 1 ItlV t? riiill ctT lcu.^'1 lO LiF y tKAi tr rrr (-'Oil '
struction ©f inspection oxporionco working
under diroct supervision ©f a certified
oloctrical inspector 444 ©f aft olectncal
contractor ' i vith unlimit e d lic e ns e ift North
Carolina, at least tw© years of which have
boon performed ift responsibl e charge ©fa
variety ©f types aftd larger sinos ©f build
ings with a supporting letter from such
supen'isor; ©f
(4-^ have boon certified under this aet as aft
oloctrical inspector 447 have had at least
f©ftf years' oxporionco approving plans
aftd making inspoctions; aft4 have com
plotod at least ©fte yeaf oloctrical con
struction toclmology cuur!ios approved by
the board; ©f
fG4 hav e had at least five continuous years'
oxporionco inspectuig the oloctrical sys-
tems ©f a wide variety aft4 typos ©f larger
sir^es ©f buildings working f©f a «ty ©f
count)' under a j©b description '.vhich
contains education aftd oxpoiionc e le-
120S
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
quir e m e nt ' i e quival e nt k» afty »f Ae
abov e ; wf
{^^ hav e ft L'urri'nt liconiie fk^ a» a county
ulL'ctnoal in i. pL ' ctor pur ' iuant te CiS.
153 A 351.
(3) Limitation on occupancy classifications
of buildintzs for fire Inspectors, I evels J_^
II and 111:
CI-RIH ICA110N LEVELS
fOR flRi; INSl'I-CIORS
LEVEL I:
LEVEL II:
OCCLPANCY:
Business
Small Assembly
Mercantile
Residential
Storage
Excluding Ilighrise ^
No Plan Review
OCCUPANC^^:
I-vePithing in f e\el I
I arge .Assembly
Educational
Industnal
Plan Review of all
Occupancies m 1 evel H
Excluding 1 lighrise ^
LEVEL III:
OCCUPANCY:
f'ver\'thing in Le\els I and H
Hazardous
Institutional
1 lighnse
Plan Review of aU Occupancies
(I nlimited Occupancies)
^ The term "excluding highrise" is listed because
some of the acceptable occupancies For the levels
could be located in a highrise building.
(b) Whenever a pro\ision of this l^ule requires
a supporting letter, the letter shall be notan/ed.
shall state the author's qualifications (i.e.. what
t\ pe and le\ el of certificate or license he holds),
shall state that the applicant has worked under
his direct super\ isum lor a specihed peruxl of
time, and shall recommend certitication of the
applicant as a specified t\'pe and le\'el of inspector
upon satistactK^n of other required qualitications.
\\'hene\er a proMsion of this Rule requires the
possesNion o[ a license other than those certif-
icates that are issued hv the Hoard, if the status
o\_ the license is inacti\ e. the applicant must pro-
\ide documentation Irom the appropnate licens-
ing board, \\hene\er a provision ot this Rule
requires a high school education or other educa-
tion and experience quaUfications. the Board may
in its discretion approve equivalent requirements.
I'very applicant for certification as a code ad-
ministrator or a building, electrical, mechanical,
plumbing, or fire inspector shall, in addition to
satisfying the appropriate education and experi-
ence qualifications prescribed by this Rule:
( 1 ) provide documentation that the applicant
possesses a minimum of a high school
education; and
provide certification by a city or county
01
manager or clerk that the applicant is the
administrative head of or is pertorming
"code enforcement", as defined in Ci.S.
143-151.H(a)(3), as an employee of that
city or county; or provide certification by
the head of the f'ngineering and Building
Codes Division of the North Carolina
IJepartment of Insurance that the appli-
cant is performing "code enforcement",
as defined in OS. 143- 151.8(a)(3), for a
state department or agency; and
(3) make a passing grade on short courses
specified by the Board or equivalent
courses appro\'ed bv the Board; and
(4) and make a passing grade on the written
examination administered bv the Board.
(c) Code Administrator. .A standard certilicate,
code administrator, shall be issued to anv appli-
cant whcK
( 1) possesses a standard certificate as a build-
ing inspector, electrical inspector, me-
chanical inspector, plumbing inspector,
or tire inspector; and
(2) has had at least one year of experience
supervising inspections for the state or a
cit\' or county inspection department.
(d) Building Inspector, Level 1^ A standard
certificate, building inspector. I evel f shall be
issued to any applicant who complies with Para-
graph (b) of this Rule and uhci pnnides doc-
umentation that the applicant possesses one of
the following education - and experience qualifica-
tions:
( 1 ) completion of at least one \ear of technical
or trade school training; an apprenticeship
progiam m building construction; or an
appnned four-vear nontechnical degree;
(2) at least six months c)f work under the di-
rect supen. ision of a standard certif ed
building inspector f I_f or 111, licensed
engineer, architect, or general contractor.
ill
(4)
with a supporting letter from such super-
visor;
a lunited license as a building contractor;
at
leas
t one \ear of building construction
or inspection experience while working
under a limited licensed building contrac-
tor;
4:24 NORTH CAROLINA REGISTER Maych 15, 1990
1209
PROPOSED RULES
Q
tor, with a supporting letter from such
supervisor;
(6) certification by the Board as a building
' inspector Ij^ at least three years of experi-
ence approving plans and making in-
spections as such certified inspector; and
completion of at least one year of building
construction technology' courses approved
by the Board; or
(7) at least four continuous years of experi-
ence inspecting construction on Level II
buildings for a city or county inspection
department.
(f) Building Inspector, Level III. A standard
certificate, building inspector, Level III, shall be
issued to any applicant who complies with Para-
graph (b) of this Rule and who prcnidcs doc-
umentation that the applicant possesses one of
the following education and experience qualifica-
tions:
( 1 ) a license as an engineer or architect whose
preprofessional qualihcations. experience,
and professional practice is in architec-
tural, stRictural. or tire protection design
or inspection of buildings and who cur-
rently is specializing in architectural, civil,
or fire protection engineering;
(2) completion of at least four years of tech-
nical or university training in the field of
civil or architectural engineering; and at
least one year of building construction or
inspection experience while working un-
der a certified building inspector III, li^
censed engineer, architect, or unlimited
licensed building ctinlraclor, at least at the
level of supervisor or journeyman building
trades craftsman and in responsible charge
of a wide vanety of types of I evel III
buildings;
(3) completion of at least two years of tech-
nical or uni\'ersity training in the field of
inspector II. mechanical inspector II, ci\il or architectural engineering or build-
ing constniction technoloL!\'; and at least
three years of buildins: constniction. dc-
(5) certification by the Board as an electrical
inspector I^ mechanical inspector I^
plumbing inspector I^ or fire inspector I^
at least one year of experience as such
certified inspector; and completion of at
least one year of building construction
technology courses approved by the
Board;
(6) at least two years of experience as an active
principal in a home building firm;
(7) at least two sears ot' expenence as a sub-
contractor in the building trades or work
in building construction under the super-
vision of a home builder who at that tune
had at least three years of experience; or
(8) at least two continuous years of experience
inspecting constniction of Level \ build-
ings for a city or county inspection de-
partment.
(e) Building Inspector, I evel II. A standard
certificate, building inspector. Level 11. shall be
issued to any applicant whc^ complies with Para-
graph (b) of this Rule and who provides doc-
umentation that the applicant possesses one of
the following education and experience qualifica-
tions:
( I) a license as an engineer or architect whose
experience is outside of civil or architec-
tural design or inspection of buildings;
completion of at least two years of tech-
nical or university training in the field of
civil or architectural enuineering or build-
t
(
ing construction technology; or an ap-
proved four-year nontechnical degree with
at least two years of design, installation,
or inspection experience on Level I_[
buildings while working under a certified
building inspector \\_ or III, licensed engi-
neer, architect, or intcnnediate or unlim-
ited licensed building contractor;
(3) certification by the Board as an electrical
plumbing inspector II, or fire inspector II;
at least three years of experience as such
certified inspector: and completion of at
least one year of building constniction
technology courses approved bv the
Board;
(4) a limited or intermediate license as a
building contractor with experience on
I evel II buiklums;
(5) at least thn
ee vears
of d
esmn. installation.
or inspection experience on Level I_l
buildings while working under the direct
supervision of a certified buildmL: inspec-
tor j_I or III, licensed engineer, architect.
or intermediate licensed buildiim contrac-
sign, or inspection exiK-nence while
working under a certified building inspec-
tor III, licensed enaneer. architect, or un-
limited licensed building contractor, with
at least one \ear in res]-ionsibie charge of
a wide variety of types of I evel III build-
ings;
(4) certification bv the Board as an electrical
inspector 111, mechanical inspector 111.
plumbing inspector III, or fire inspector
111: at_ least lour \ears of experience as
such certified inspector; and completion
of at least one \ear ol buiklinL; con-
i
1210
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
struction technology courses approved by
the Board: or
(51 an
an unlimited license as a building con-
tractor with experience in constaiction of
I.,evel HI buildinizs;
(6) at least tour years of constaiction or in-
spection expcnence while workini; under
the direct supervision of a certified build-
in t; inspector HI, licensed enizineer, archi-
tect, or unlimited licensed building
contractor, two \ears of which have been
pertonned in responsible charge of a wide
variety of t\pes of I evel HI buildmgs,
with a supporting letter from such super-
visor;
(7) certification by the Roard as a building
inspector H; at least four \ears of experi-
ence approMniZ plans and making in-
spections as such certified inspector; and
completion of lU least one vcar of building
construction technology courses approved
by the Hoard; or
(S) at least tive continuous \ears of experience
inspecting the constaiction of a wide va-
riety of t\pes of Level HI buildings for a
city or county inspection department.
(g) Flectrical Inspector. 1 evel L A standard
certificate, electrical inspector. I,I:VI' L T shall
be issued to any applicant who complies with
Paragraph (b) of this Rule and who provides
documentation that the applicant possesses one
of the following education and experience quali-
fications:
( 1) completion of at least one year of technical
or trade school training or an apprentice-
ship program in electncal construction:
or an approved four-\ear nontechnical
degree;
(2) at^ least six months of work imdcr the di-
rect super\ision of a standard certified
electrical inspector K j_r or III, licensed
engineer, or licensed electrical contractor,
with a supporting letter from such super-
visor;
(3) a Umited restricted (one family dwelling)
or limited license as an electrical contrac-
tor;
(4) at least one \'ear of electrical installation
or inspection experience while working
under a limited licensed electncal contrac-
(il
tor;
certification
h\ the Board as a building
inspector L meclKinical inspector L
plumbing inspector J^ or fire inspector L
at least one \ ear of experience as such
certitied inspector: and completion of at
least one \ear of electrical constmction
technology courses approved by the
Board;
(6) at least two years of experience in electrical
installation; or
(7) a current license (3q) as a county electrical
inspector issued by the ('ommissioner of
Insurance pursuant to (i.S. I5.\\-351; or
(8) at least two continuous years of experience
inspecting electrical installations in Level
I buildings for a city or county inspection
department.
(h) Electrical Inspector, Level II. A standard
certificate, electrical inspector, I evel II, shall be
issued to any applicant who complies with Para-
graph (b) of this Rule and who pro\ides doc-
umentation that the applicant possesses one of
the following education and experience qualifica-
tions:
( 1) a license as an engineer with experience
outside of electrical design or inspection
of buildings;
(2) completion of at least two years of tech-
nical or uni\ersitv training vn the field of
electrical engineering or electncal con-
struction technology; or an appro\ed
four-\car nontechnical degree and at least
two years of design, installation, or in-
spection experience on I evel H buildings
while workmg under a certified electrical
inspector I_[ or HI. a licensed engineer, or
an intennediate or unlimited licensed
electrical contractor;
(3) certification by the Board as a building
inspector II, mechanical inspector II,
plumbing inspector II. or fire inspect(^r II;
at least three \cars of experience as such
certified inspector: and completion of at
least one year of electrical construction
technology courses approved by the
Board;
(4) a limited or intennediate license as an
electrical contractor with expcnence on
Le\el I_[ buildings;
(5) at least three \ears of installation or in-
spection experience on I e\el \\_ buildings
while working under the direct super\ ision
of a certified electncal inspector H or HI.
a licensed engineer, or an intermediate li-
censed electrical contractor, with a sup-
porting letter frcnn such supenisor:
certitlcation by tjie Board as an electrical
inspector I^ at least three \ears of experi-
ence approving plans and making in-
spections as such certified inspector: and
completion (M al least one \ear of elec-
trical constmction technology courses ap-
proN'ed by the Board;
(61
4:24 NORTH CAROLINA REGISTER March 15, 1990
1211
PROPOSED RULES
(7) a current license (2q) as a county electrical
inspector issued by the (rommissioner of
Insurance pursuant to G.S. 153A-351; or
(S) at least Four continuous years of experi-
ence inspecting electrical installations in
Level ]_[ buildings for a city or county in-
spection department.
(i} Electrical Inspector, Level III. A standard
certificate, electrical inspector, I evel III, shall be
issued to any applicant who complies with Para-
graph (b) of this Rule and who provides doc-
umentation that the applicant possesses one of
the following education and experience qualifica-
tions:
a license as an engineer with preprofes-
sional qualifications and experience, and
professional practice is in electrical design
or inspection of buildings and who is cur-
rently specializing in electrical engineering;
(2) completion of' at least four years of tech-
nical or university training in the field of
electrical engineenng; and at least one year
of electrical construction or inspection
experience while working under a certified
electncal inspector III, licensed engineer,
or unlimited licensed electrical contractor,
at least at the level of supervisor or jour-
neyman building trades craftsman and in
ih
responsible charge of a wide vanety of
types of Level 111 buildings;
(3) completion of at least two years of tech-
nical or university training m the tield of
electrical engineering or electrical con-
struction technology; and at least three
years of electrical construction, design, or
inspection experience while working un-
der a certified electrical inspector 111, li^
censed engineer, or unlimited licensed
electrical contractor, with at least one year
in responsible charge of a wide variety of
t\pes of 1 .evel 111 buildings;
(4) certification by the Board as a building
inspector HI, mechanical inspector 111,
plumbing inspector 111, or tire inspector
111: at least four years of experience as
such certified mspector; and completion
of at least one year of electrical con-
struction technology courses approved by
the Board;
(5) have an unlimited license as an electrical
contractor with experience in construction
of Level 111 buildings;
(6) at least four \ears of constniction or in-
spection expenence while working under
the direct supcr\ision of a certified elec-
trical inspector 111, licensed engineer, or
unlimited licensed electrical contractor,
in responsible charge of a wide variety of
types of Level 111 buildings, with a sup-
porting letter from such supervisor;
(7) certification by the Board as an electrical
inspector II; at least four years of experi-
ence approving plans and making in-
spections as such certified inspector; and
completion of at least one year of elec-
trical construction technology courses ap-
proved by the Board;
(8) a current license ( Iq) as a county electrical
inspector issued by the Commissioner of
Insurance pursuant to G.S. 153A-35I; or
(9) at least live continuous years of experience
inspecting the electrical SNStems of a wide
variety of types of Level 111 buildings for
a city or county inspection department.
(i) Mechanical Inspector, Level L A standard
certificate, mechanical inspector. Level I^ shall be
issued to any applicant who complies with Para-
graph (b) of this Rule and who provides doc-
umentation that the applicant possesses one of
the following education and experience qualifica-
tions:
( 1) completion of at least one year of technical
or trade school training or an apprentice-
ship program in mechanical constniction;
or an approved four year nontechnical
degree;
at least six months of work under the di-
of a standard certified
<
(2) at least six
rect supervision
mechanical inspector Jj, iL or III, licensed
engineer, or licensed mechanical contrac-
tor, with a supporting letter from such
supervisor;
(3) an H-2 or 11-3 license as a mechanical
contractor;
(4) at least one year of mechanical installation
or mechanical inspection experience while
working under an 1 1-2 or 1 1-3 licensed
mechanical contractor;
[5} certification by the Board as a building
inspector L electrical inspector L plumb-
ing inspector L or fire inspector L at least
one year of experience as such certified
inspector; and completion of at least one
year of mechanical constiaiction technol-
ogy courses approved by the Board;
at least two years' experience in mechan-
ical installation; or
at least two continuous years of experience
{
(61
inspecting mechanical installations in
Lc\cl I^ buildings for a citv or county in-
spection department,
(k) Mechanical Inspector. Le\'el II. A standard
certificate, mechanical inspector. I evel II. shall
be issued to an\^ applicant who complies with
two \ears of which have been peiformed Paragraph (b) of this Rule and who pro\ides
I
1212
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
documentation that the applicant possesses one
of the following education and expenence quali-
fications:
( 1) a license as an enuinccr with experience
outside of mechanical design or inspection
o[ buildings;
(2) C(nnpleti(^n of at least two years of tech-
nical or university training in the field of
mechanical endneenng or mechanical
construction techn(>log\'; or an approved
fcHir-vear nontechnical degree with at least
two \ears cM' design, installation, or in-
spection experience on level H buildings
while working under a certd'ied mechan-
ical inspector l_[ or 111, licensed engineer,
or licensed 11-2 or 11-3 mechanical con-
tractor;
(3) certification bv the Board as a building
inspector II, electncal inspector II,
plumbing inspector II, or fire inspector II;
at least three years of experience as such
certified inspector: and completion of at
least one vear of mechanical construction
01
techncdogv
Board:
courses
appro\'ed by the
an 11-2 or H-3 license as a mechanical
contractor with experience on I e\ el J_I
buikiinizs;
(5) at least three \ears of installation or in-
spection experience on I e\ el ]_[ buildings
while working under the direct supervision
of a certified mechanical inspector \\_ or
III, licensed engineer, or licensed 1 1-2 or
1 1-3 mechanical ccMilractor, with a sup-
porting letter trom such supervisor;
certification bv the Board as a mechanical
least three years of experi-
(6)
plans and making in-
tZl
inspector h a[
ence appro\ini;
spections as such certified inspector: and
completion of at^ least one \ear of me-
chanical constnictitm technology courses
approved by the Board: or
at least four continuous years of e xperi-
ence inspecting mechanical installations in
I e\el I_[ buildings for a cit\- or county in-
spection department.
(1) Mechanical Inspectcir. I e\el III. A standard
certificate, mechanical inspector, level III shall
be
to any applicant who complies with
Paragraph (b) of this Rule and who pro\ides
documentation that the applicant possesses one
of the following education and expenence quali-
fications:
( 1 ) a license as an enizineer with preprofcs-
sional qualifications and expenence and
professional practice ijn mechanical design
or inspection of buildings and current
specialization in mechanical engineering:
111
(51
(61
completion of at least four years of tech-
nical or university training m the field of
mechanical engineering; and at least one
year of mechanical construction or in-
spection experience while working under
a certified mechanical inspector III, h^
censed engineer, or licensed 1 1- 1 . 1 1-2, and
H-3 mechanical contractor, at least at the
level of supervisor or journeyman building
trades craftsman and m responsible charge
of a wide variety of t\pes of 1 ,evel III
buildings;
completion of at least two years of tech-
nical or uni\'ersity training in the field of
mechanical engineenng or mechanical
construction technoloa\' and at least three
years of mechanical constaiction, desiizn.
or inspection experience working under a
mechanical inspector 111, licensed me-
chanical engineer, or licensed II- 1, 11-2,
and W-i mechanical contractor, with at
least one year in responsible charge of a
wide \"ariet\ of t\pes of I e\ el III build-
(4) certification bv the Board as a building
inspector III, electncal inspector III.
plumbing inspector III, or fire inspector
III; at least four years of experience as
such certified inspect(^r. and completion
of at least one \ear of mechanical con-
struction technology courses approved bv
the Board;
111, 11-2, and H-3 license as a mechanical
contractor with experience in constmction
ot^^ I e\ el III buildings:
at least four \'ears of constmction or in-
speclion experience while working under
the three! super\ ision of a certified me-
chanical inspector III, licensed enuineer.
or licensed 1 1- 1 , 1 1-2, and 1 1-3 mechanical
contractor, two \ears of which ha\e been
perionned in respiMisible charge of a wide
varietN' of t\pes of I e\el 111 buildinus.
with a supporting letter from such super-
\isor;
as a mechanical
(7) certification bv the Boarc
inspector II: at least tour \ears of experi-
ence appro\ ing plans and making in-
spections as such certified inspector: and
completion ot at least one \ear o[ me-
chanical construction techncdogv courses
approved bv the Board:
(8) at least li\e continuous \ears of experience
inspecting the mechanical s\ stems of a
wide \anet\' of l\pes of I e\el III buildings
for a cit\ or countx inspection depart -
ment.
4:24 NORTH CAROLINA REGISTER M inch 15, 1990
I2I3
PROPOSED RULES
(m) Plumbirip Inspector, Level ]__ A standard
certificate, plumbing inspector. Level J_^ shall be
issued \Q_ any applicant who complies with Para-
graph (b) of this Rule and who provides doc-
umentation that the applicant possesses one of
the following education and experience qualifica-
tions:
( 1) completion of at least one year of technical
or trade school training or an apprentice-
ship program in plumbing construction;
or an approved four-year nontechnical
degree;
(2) at least six months of work under the di-
rect supervision of a standard certified
plumbing inspector li I_L or 111, licensed
engineer, or licensed plumbing contractor,
with a suppcjrting letter from such super-
visor;
(3) a license as a plumbing contractor;
(4) at least one year of plumbing installation
or plumbing mspection experience while
working under a licensed plumbing con-
tractor;
(5) certification bv the Board as a building
inspector L electncal inspector L me-
chanical inspector L or fire inspector I^ at
least one year of experience as such certi-
fied inspector; and completion of at least
one year of plumbing construction tech-
nology courses approved by the Board;
(6) at least two years of experience in plumb-
in iz installation; or
(7) at least two continuous years of experience
inspecting plumbing installations in Level
I buildings for a city or county inspection
department.
(n) Plumbing Inspector, Level II. A standard
certificate, plumbing inspector, Level 11. shall be
issued to any applicant who complies with Para-
graph (b) of this Rule and who pro\ides doc-
umentation that the applicant possesses one of
the following education and expenence ciualifica-
tions:
(1) a license as an engineer with experience
outside of plumbing design or inspection
of buildings;
(2) completion of at least two \'ears of tech-
nical or university training in the field of
mechanical engmcering or plumbing con-
struction technology; or an approved
four-year nontechnical degree and at least
two years of desiizn, installation, or in-
spection experience on I evel 11 buildings
iH
while working under a certified plumbing
inspector H or 111, licensed engineer, or
licensed plumbing contractor;
certification bv the Board as a building
inspector II. electrical inspector II. me-
chanical inspector II, or fire inspector II;
at least three years of experience as such
certified inspector; and completion of at
' least one year of plumbing construction
technology courses approved by the
Board;
(4) a license as a plumbing contractor with
experience on L e\el ]]_ buildings;
(5) at least three years of installation or in-
spection experience on I evel ]_[ buildings
while working under the direct supervision
of a certified plumbing inspector J_I or III,
licensed engineer, or licensed plumbing
contractor, with a supporting letter from
such supervisor;
(6) certification bv the Board as a plumbing
inspector L at least three years of expen-
ence approving plans and making m-
spections as such certified inspector; and
completion of at least one year of plumb-
ing construction technology courses ap-
proved by the Board: or
(7) at least four continuous years of experi-
ence inspecting plumbing installations on
Level \\_ buildings for a city or count\- in-
spection department.
Mumbing Inspector, I e\ el III. A standard
ate, plumbing inspector, I .evel III shall be
issued to an\' applicant who complies with Para-
graph (b) of this Rule and who provides doc-
umentation that the applicant possesses one of
the following education and experience qualifica-
tions:
(o)_I
ccrtific
01
Hi
ill
a license as an engineer with preprofes-
sional qualifications and experience and
professional practice m plumbing design
or inspection of buildings and who is cur-
rently specializing in mechanical engi-
neering;
completion of at least four years of tech-
nical or university training in the field of
mechanical engineenng and at least one
year of plumbing construction or in-
spection expenence while working under
a certified plumbing inspector III, licensed
cngmecr. or licensed plumbing contractor,
at least at the level of supcnisor or jour-
neyman building trades craftsman and in
responsible charge of a wide warietv of
types of Level III buildings;
completion of at_ least two \ears of tech-
nical or universitx' training m the field of
mechanical engineering or plumbing con-
struction tcchnolog\ ; and at_ least three
years of plumbing constmction, design.
or inspection expenence while working
under a certified plumbing inspector III.
licensed engineer, or licensed plumbing
1214
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
contractor, with at least one year in re-
sponsible charge of a wide variety of types
of Level HI buildings;
(4) certification by the Board as a building
inspector 111, electrical inspector 111, me-
chanical inspector 111, or fire inspector 111;
at least four years of experience as such
certified inspector; and completion of at
least one year of plumbing constniction
technology courses approved by the
Board;
(5) a license as a plumbing contractor with
expenence in plumbing systems of Level
111 buildings;
(6) at least four years of construction or in-
spection experience working under the di-
rect supervision of a certified plumbing
inspector III, licensed engineer, or licensed
plumbing contractor, two \ears of wliich
have been perfoimed in responsible charge
of a wide vanetv of t\pes of Level III
buildings, with a supporting letter from
such supervisor;
(7) certification bv the Board as a plumbing
inspector II: at least four \'ears of experi-
ence approving plans and making in-
spections as such certified inspector; and
completion of at least one \ear of plumb-
ing constniction technology courses ap-
proved by the Board; or
(8) at least five continuous years of experience
inspecting the plumbing systems of a wide
\anetv of t\pes of Le\el III buildings
while working for a city or county in-
spection department.
(p) I -ire Inspector. I evel L A standard certif-
icate, tire inspector, I .e\el L shall be issued to any
applicant who complies with Paragraph (b) of
this Rule and who pro\ ides d(H'umentation that
the applicant possesses one of the following edu-
cation and experience qualifications:
( 1) completion of at least one \ear of technical
or trade school training or an apprentice-
ship progr:im in tire protection technol-
ogy; or an approved four-vear
nontechnical degree:
(2) at^ least six months of work under the di-
rect superyjsion of a standard certified fire
inspector L LL or III, licensed engineer,
or architect, with a supporting letter from
such supervisor:
(-1) at least three \ears of constniction. main-
tenance, or general inspection experience
m fire protection systems while working
under a limited licensed contractor with
experience m tire protection s\ stems;
(4) certification bv the Board as a building
inspector L electrical inspector L me-
chanical inspector I^^ or plumbing inspec-
tor I^ at least one year of experience as
such certified inspector; and completion
of at least one year of fire protection
technology courses approved by the
Board;
(5) at least two continuous years of fire in-
spection experience inspecting Level I
Occupancy buildings for a city, county,
or other governmental fire inspection de-
partment;
(6) at least four continuous years of experi-
ence in fire suppression activities for a
city, county, volunteer, or other govern-
mental fire department; or
(7) I'irefighter Level 111 certification under the
North Carolina State I ire and Rescue
Commission with at least one year of fire
protection experience in Level ]_ Occu-
panc\ buildings.
(q) [-'ire Inspector. Level II. A standard cer-
tificate, tire inspector, Le\'el II. shall be issued to
any applicant who complies with Paragraph (b)
of this Rule and who provides documentation
that the applicant possesses one of the following
education and experience quaLifications:
( 1) a license as an engineer or architect with
expenence outside of design or inspection
of fire protection systems;
(2) completion of a1 least two \ears of tech-
nical or university training in the field of
civil or architectural engineering, building
constniction technology, or fire protection
technology; or an approved four- year
nontechnical degree and at least two years
of design and installation experience in fire
protection systems or fire inspection ex-
perience on Level I_[ Occupancy buildings
while working under a certified fire in-
spector ]_[ or III, licensed engineer, or ar-
chitect;
(3) certification bv the Board as a building
inspector II. electrical inspector II, me-
chanical inspector II. or plumbing inspec-
tor II: at least three years of experience as
such certified inspector; and completion
of at least one year of fire protection
technology courses approved bv the
Board;
(4) at least three years of design, installation.
{21
or inspection expenence in fire protection
systems on I e\el ]_[ ( )ccupanc\ buildings
while working under the direct supen ision
of a certified fire inspector H or III, li^
censed engineer, or architect, with a sup-
porting letter frcnn such supen. i^or;
certification by the Board as a fire inspec-
tor L at least three years of experience
4:24 NORTH CAROLINA REGISTER March 15, 1990
1215
PROPOSED RULES
making inspections as such certified in-
spector; and completion of at least one
year of fire protection technology courses
approved by the Board;
(6) at least four continuous years of experi-
ence conducting fire inspections in Ixvel
n Occupancy buildings for a city, county,
or other oovemmental fire inspection de-
partment; or
(7) completion of the basic, intennediate, and
advanced classes of the North Carolina
Fnre Prevention School, with at least three
years of fire protection experience in Level
II Occupancy buildings.
(r) Fire Inspector, level III. A standard cer-
tificate, fire inspector. Level HI, shall be issued
to any applicant who complies with Paragraph
(b) ot' this Rule and vvh(^ provides documentation
that the applicant possesses one of the following
education and experience qualifications:
( 1) a Uccnse as an engineer or architect with
preprofessional qualifications and experi-
ence and professional practice in architec-
tural, structural, or fire protection design
or inspection of buildings and who is cur-
rently speciafizing in architectural, civil,
or fire protection engineering;
(2) completion of at least four years of tech-
nical or university training in the field of
civil, architectural, or fire protection engi-
neering; and at least one year of fire in-
spection experience while working under
a certified fire inspector 111, licensed engi-
neer, or architect and in responsible
charge of Level 111 Occupancy buildings;
(3) completion of at least two years of tech-
nical or university training in the field of
civil, architectural, or fire protection engi-
neering; and at least three years of con-
struction, design, or inspection experience
while working under a certified fire in-
spector III, licensed engineer, architect, or
unlimited licensed contractor, with at least
one year in responsible charge of Level III
Occupancy buildings;
(4) certification by the Board as a building
inspector III, electrical inspector III, me-
chanical inspector III, or plumbing in-
spector III; at least four years of
experience as such certified inspector; and
completion of at least one year of fire
protection technology courses approved
by the Board;
(5) at least four years of design and installation
experience in fire protection systems or
fire inspection expenence while working
under the direct super\'ision of a certified
fire inspector III, licensed engineer, or ar-
chitect, two years of which have been
performed in responsible charge of I^vel
' III Occupancy buildings, with a support-
ing letter from such supervisor;
(6) certification by the Board as a fire inspec-
tor II; at least four years of experience
approving plans and making inspections
as such certified inspector; and completion
of at least one year of fire protection
technology courses approved by the
Board; or
(7) at least five continuous years of experience
conducting fire inspections m I .evel III
Occupancy buildings for a city, county,
or other go\'emmental fire inspection de-
partment.
Statutory Authority
143-151.13.
G.S. 143-151.12(1);
.0709 RE^EVVAL
To remain effective, a standard certificate must
be renewed annually on or before the first day
of July. Applications for renewal shall be made
in the same manner as the original apphcation for
the certificate, on forms furnished by the Division
of Engineering and Building Codes of the De-
partment of Insurance. A five ten dollar ($5.00)
($10.00) renewal fee shaU accompany each such
application. In the event that an application for
renewal is not received by July 1, an additional
late-renewal fee of two dollars ($2.00) shall be
charged. Any person who fails to renew his cer-
tificate for a period of two consecutive years shall
be required by the Board to take and pass the
same examination as unlicensed applicants for
that type and level of certificate before allowing
such person to renew his certificate.
Statutory Authority G.S. 143-151 .16.
TITLE 13 - DEPARLMENT OF LABOR
ly otice is hereby given in accordance with G.S.
I50B-I2 that the Department of Labor - Appren-
ticeship and Training Division intends to amend
rule(s) cited as 13 NCAC 14 .0204 and .0404.
I he proposed effecti\-e date of this action is .fuly
I. 1990.
1 he public hearing will be conducted at 2:00
p.m. on .'ipril 18, 1990 at Third Floor Board
Room, Education Building. 116 West Edenton
Street, Raleigh, XC 27601.
1216
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
(^ ommcnt Procedures: People wanting to pres-
ent oral testimony at the hearing or who want to
have written testimony read at the hearing should
provide a written summary of the proposed testi-
mony to the Department by April 13, J 990. Oral
presentations will be limited to 15 minutes each.
Written statements not presented at the hearing
will be accepted by the Department until April IS,
J 990. All correspondence should be directed to
Bobby Bryan, N.C. Department of Labor, 4 West
Edenton Street, Raleigh, NC 27601 . Interpreters
for hearing impaired will be made available if re-
quested, 24 hours in advance.
(a) The OJT program must be set forth in a
written document, signed by the sponsor, which
includes the following provisions and is denomi-
nated the programs standards for OJ T:
(9) A provision requiring that the ratio of
trainees to fully qualified workers will not
exceed »fte two to one at each job site,
work force, department, or plant;
Statutory Authority G.S. 94-1; 94-2; 94-4.
niLK ISA DKPARTIVlENr OF
EN\ IROWMENT, HEALTH AND NATURAL
RESOURCES
ClIAPIKK 14 - AE'l'KKNTICESIIIl' AND
TKAIMNG DIVISION
SECTION .0200 - REQUIREMENTS AND
QUALIFICATIONS FOR APPRENTICESHIP
.0204 REQUIREMENTS AND STANDARDS OF
APPRENTICESHIP
(a) An apprenticeship program must conform
to the following minimum requirements in order
to obtain and maintain registration:
(5) The apprcnticesliip program must be set
forth in a wnttcn document, signed by the
sponsor, which includes the following
provisions and is denominated the pro-
gram standards of apprenticeship:
(J) A provision requiring that the ratio of
apprentices to journeymen will not exceed
e«e two to one at each job site, work
force, department, or plant, except as fol-
lows:
(i) In the building and construction
trades, the ratio of apprentices to jour-
neymen in all occupations except elec-
trician, shall not exceed one to one fe*
t-l+e t+f^ thn. ' L > jounioymL'u at«i »ftt» te-
fo«f thorc'ciftor at each job site, work
force, department, or plant;
(ii) In the building and construction
trades, in the occupation ot electrician,
the ratio of apprentices to jonmcvmen
shall not exceed one to two at each job
site, work force, depailment. or plant;
(iii) f«| No such spccilic ratios are re-
quired where expressly prohibited or
otherwise provided for by an applicable
collecti\'e bargaining agreement;
Statutoiy Authority G.S. 94-1; 94-2; 94-4.
SECTION .0400 - APPROVAL/\ E I ERANS'
TR.MNING ALLOWANCES
.0404 STANDARDS FOR OJT
A^.
otice is hereby given in accordance with G.S.
J 508- J 2 that the Environmental Management
Commission intends to amend rule(s) cited as
I5A NCAC 2B .0303.
1 he proposed effective date of this action is No-
vember I. 1990.
1 he public hearing will be conducted at 7:00
p.m. on May 14, 1990 at Courtroom A, Macon
County Courthouse, 5 W. Main Street, Eranklin,
N.C.
Co
' omment Procedures: A II persons interested in
this matter are invited to attend. Comments,
statements, data and other information may be
submitted in writing prior to, during, or within 30
days after the hearing or may be presented orally
at the hearing. Oral statements may be limited
at the discretion of the hearing officer. Submittal
of written copies of oral statements is encouraged.
Eor more information contact Suzanne II. Keen,
Division of Emironmental Management, P.O. Box
27687, Raleigh. NC 27611, (919) 733-50S3.
CII AFTER 2 - ENMRONMENTAL
MAN.V(,EMENT
SUBCHAPTER 2B - SURFACE WATER
SIANDARDS: MONHORIN(;
SEC HON .0300 - ASSIGNMEN r OF S IREAM
CLASSIFIC.VnONS
.0303 LITTLE TENN Rl\ ER B.VSIN AND
SAVANNAH RI\ER DR.MNAGE AREA
(c) The Little Tennessee River Basin and Sa-
vannah River L)rainage Area Schedule of Classi-
fications and Water Quality Standards was
amended effective:
(1) February- 16, 1977;
(2) March f, 1977;
(3) Julv 13, 1980;
4:24 NORTH CAROLINA REGISTER March 15, 1990
1217
PROPOSED RULES
(4)
(5)
(6)
(7)
(81
February 1, 1986;
October 1, 1987;
March 1, 1989;
January 1, 1990;
November 1, 1990.
(f) I'he Schedule of Classifications and Water
Quality Standards for the Little Tennessee River
Basin and Savannah River Drainai^e Area was
amended effective November j_^ 1990 as follows:
( 1) Cartoosechaye Creek [Index Nos. 2-19-(l)
and 2-19-( 16)| from the Town of I'ranklin
water supply intake to bridge at U.S.
Hwy. 23 and 441 and from the bridge at
U.S. Hwy. 23 and 44j_ to the Little Ten-
nessee River was reclassified from Classes
WS-lIl Tr and C Tr to Classes WS-Ill&B
Tr and B Tr respectively.
(2) Coweeta Creek (Index No. 2-10) from its
source to the Little Tennessee River in-
cluding all tributaries except [3r\man
Fork (Index No. 2-10-3) and North Fork
Coweeta Creek (Index No. 2-10-4) was
reclassified from Classes C and C Tr to
Classes B and B Tn
Slatutory Authority G.S. 143-
l43-2l5.3(a)(l).
'14.1; 143-215.1;
^■k-k'k'k'k'k'k-k'k-k'k-k-k-k'k'k-k
lyotice is hereby given in accordance with G.S.
] SOB- 12 that the Environmental Management
Commission intends to amend nde(s) cited as
ISA NCAC 2B .030S.
1 he proposed effective date of this action is No-
vember 1. 1990.
1 he public hearing will be conducted at 7:00
p.m. on May IS, 1990 at Courtroom 1 , Watauga
County Courthouse, 403 W. King Street, Boone,
N.C.
y^omnient Procedures; All persons interested in
this matter are imited to attend. Comments,
statements, data, and other information may be
submitted in writing prior to, during, or within 30
days after the hearing or may be presented orallv
at the hearing. Oral statements may be limited
at the discretion of the hearing officer. Submittal
of written copies of oral statements is encouraged.
For more information contact Suzanne If. Keen,
Division of Eiwironmental Management, P.O. Box
276S7, Raleigh. NC 27611, (919) 733-S0S3.
.0.?05 \VAT.\LGA RH ER BASIN
(c) The Watauga River Basin Schedule of
Classifications and Water Quality Standards was
amended effective:
(1) August 12, 1979;
(2) February 1, 1986;
(3) October 1, 1987;
(4) July 1, 1989;
(51 November 1, 1990.
(e) The Schedule ot' Classifications and Water
Quality Standards for the Watauga River Basin
was amended effective November J^ 1 990 with
the reclassification of the Watauga River from
the US Highway 321 bridge to the North
Carolina/Tennessee state line from Class C to
Class B.
Statutory Authority G.S. 143-214. 1; 143-215.1;
143-2I5.3(a)(l).
TITLE 16 - DEPARTMENT OF PUBLIC
EDUCATION
lyotice is hereby given in accordance with G.S.
1 SOB- 12 that the State Board of Education in-
tends to amend rule(s) cited as 16 NCAC 6D
.0105.
1 he proposed effective date of this action is A u-
gust 1, 1990.
Th
he public hearing will be conducted at 9:30
a.m. on April 18, 1990 at Third Floor Board
Room, Education Building 114 W. Edenton
Street, Raleigh, NC 27603-17 12.
Co
'Omment Procedures: Any interested person
may present views and comments either in writing
prior to or at the hearing or orally at the hearing.
CHAPTER 6 - ELE.MENTARY AND
SECONDARY EDLCVTION
SUBCHAPTER 6D - INSTRUCTION
SECTION .0100 - CURRICULUM
.0105 USE OF SCHOOL DAY
(a) Local boards of education are obligated
both to assure that materials presented to stu-
dents during the school day arc related to the
curriculum, and to preserve their discretion and
the discretion of administrators and teachers to
determine, within the limits of the prescribed
curriculum, the materials to be presented to stu-
dents during the school day and the times during
which materials selected will be presented.
Therefore, no local board of education may enter
7275
4:24 NORTH CAROLINA REGISTER March 15, 1990
PROPOSED RULES
into a contract or agreement with any person,
corporation, association or organization which:
(1) limits or impairs its authority and respon-
sibility, or the authority and responsibility
of administrators and teachers, to deter-
mine the materials to be presented to stu-
dents during the school day; or
(2) Umits or impairs its authority and respon-
sibility, or the authority and responsibility
of administrators and teachers, to deter-
mine the times during the school day
when materials will be presented to stu-
dents.
(b) Local boards of education are obligated to
assure that students, as a consequence of the
compulsory attendance laws, are not made a
captive audience for required viewing, listening
to, or reading commercial advertising. Therefore,
no local board of education may enter into any
contract or agreement with any person, corpo-
ration, association or organization pursuant to
which students are regularly required to observe,
listen to, or read commercial advertising. This
Rule does not prohibit local boards of education,
teachers or administrators from requiring stu-
dents from time to time to observe, Listen to, or
read educational materials that contain commer-
cial advertising. This Rule also shall not prohibit
the regular study of advertising as an academic
subject.
fe^ Any contract t>f agroomont proviouoly mado
by a local board ef oducation vpt contravention
ef this Rule ohaU net- b«» rL'nov i 'L'd by- the k)cal
board. Flo' i VL'sor, afty contract e* agrt'omont
pro' i iouijly mado by a local board &i education
that- results i«- a violation Bf the five aft4 one half
hour instructional day is her e by declared void
aift4 unenforcoablo.
(c) Tliis Rule shall apply both retroactively and
prospectively. Any contract or agreement previ-
ously made in contravention of tlus Rule is dc;^
clared void and unenforceable.
Authority N.C. Constitution. Article IX. Sec. 5;
G.S. II5C-I; II5C-2; I l5C-I2(9)c.: II5C-8I.
4:24 NORTH CAROLINA REGISTER March 15, 1990
1219
FINAL RULES
1 he List of Rules Codified is a listing of
rules that were filed to be effective in the
month indicated.
iKules filed for publication in the NCAC
may not be identical to the proposed text
published previously in the Register. Please
contact this office if you have any questions.
/± dopted ndes filed by the Departments of
Correction, Revenue and Transportation are
published in this section. These departments
are not subject to the provisions ofG.S. I SOB,
Article 2 requiring publication in the N.C.
Register of proposed rules.
LJ pon request from the adopting agency, the
text of ndes will be published in this section.
1 unctuation, typographical and technical
changes to ndes are incorporated into the
List of Rules Codified and are noted as *
Correction. These changes do not change the
effective date of the nde.
in LE 5 DEPARTMENT OF
CORRECTION
CIlAl'TER 2 - DIVISION OF PRISONS
SLBCIIAPTER 211 - RELIGIOUS PRACTICE
SECnON .0100 - ISLAMIC SERVICES AND
PRACnCES
.0106 ADVISORY COMMIITEE ON
RELIGIOUS MINISIRV IN PRISONS
(a) General. The Secretary of Correction
hereby establishes the Ad\'isory Committee on
Religious Ministry in Prisons for the purpose of
serving as a resource for the expansion and
strengthening of chaplaincy services and religious
activities within the Division of Prisons. Com-
mittee activities shall be governed by the rules
and regulations promulgated by the Department
of Correction. The Committee shall report to
the Director of Prisons.
(b) Appointment.
(1) Recommendation for appointment wiU be
made by the appropriate person or agency
responsible for prison ministry in each re-
cognized judicatory and will be forwarded
' through the chain of command for review
by the Director of Prisons. The hst of
nominees will be submitted to the Secre-
tary for consideration.
(2) The Secretary shaU appoint committee
members to staggered three-year terms.
Committee appointments will be made
annually, with appointments effective
January 1 of each year. When unsched-
uled vacancies occur, new appointees wiU
serve the unexpired term of the council
member being replaced, and may be eligi-
ble for reappointment to a full term.
(3) Committee membership is interfaith and
interdenominational, comprised of repre-
sentatives from each recognized religious
judicatory.
(4) The Secretar>' may remove any committee
member for misfeasance, malfeasance, or
nonfeasance.
(c) Ex-Officio Members.
(1) The Chief of Program Services will ser\'e
as the liaison between the Advisory
Committee and the Director of Prisons.
(2) A representati\e(s) from the Division of
Prisons funded chaplains will attend all
meetings of the Advisory Committee.
The Chaplain representative(s) will be
elected by the large body of funded cha-
plains to serve a two-year term.
(3) The Coordinator of Chaplaincy Serv'ices
will attend all meetings and his office will
be responsible for providing clerical as-
sistance to the Committee. The coordi-
nator will represent the Chief of Program
Services in his absence. The Chaplaincy
Secretary will attend all meetings to serve
as recording secretary, and shall be re-
sponsible for distributing minutes to all
appropriate indi\iduals, including aU
state-funded chaplains.
(d) By-Laws. The Committee shaU adopt
standard by-laws. Issues not addressed by the
standard by-laws are reserved to the discretion
of the Committee to be resolved in accordance
with state law and with agency rules and regu-
lations.
History Note:
14S-II;
Eff April I.
Statutory Authority G.S. 143B-I0;
1990.
1220
4:24 NORTH CAROLINA REGISTER March 15, 1990
NORTH CAROLINA ADMINISTRA TIVE CODE CLASSIFICA TION SYSTEM
The North Carolina Administrative Code ( NCAC) has four major subdivisions of rules. Two
of these, titles and chapters, are mandatory. The major subdivision of the NCA C is the title.
Each major department in the North Carolina executive branch of government has been as-
signed a title number. Titles are further broken down into chapters which shall be numerical
in order. The other two, subchapters and sections are optional subdivisions to be used by
agencies when appropriate.
TITLE/MAJOR DFV ISIONS OF THE NORTH CAROLINA ADMIN ISTRATrV'E CODE
ITLE
DEPARTMENT
LICENSING BOARDS
CHAPTER
1
Administration
/Vrchitecture
2
2
Agriculture
Auctioneers
4
3
Auditor
Barber Examiners
6
4
Economic and Community
Certified Public Accountant Examiners
8
Development
Chiropractic Examiners
10
5
Correction
General Contractors
12
6
Council of State
Cosmetic /\j1 Examiners
14
7
Cultural Resources
Dental Examiners
16
8
Elections
Electrical Contractors
18
9
Governor
Eoresters
20
10
Human Resources
Geologists
21
11
Insurance
Hearing Aid Dealers and Fitters
22
12
Justice
Landscape Architects
26
13
Labor
Landscape Contractors
28
14A
Crime Control and Public Safety
Marital & Family Therapy
31
15A
Environment, Health, and Natural
Medical Examiners
32
Resources
Midwifery' Joint Committee
33
16
Public Education
Mortuary Science
34
17
Revenue
Nursing
36
18
Secretary of State
Nursing Home Administrators
37
19A
Transportation
Occupational Therapists
38
20
Treasurer
Opticians
40
*21
Occupational Licensing Boards
Optometry'
42
22
Administrative Procedures
Osteopathic Examination and
44
23
Community Colleges
Registration
24
Independent Agencies
Pharmacy
46
25
State Personnel
Physical Therapy Examiners
48
26
Administrative Hearings
Plumbing and Heating Contractors
50
Podiatry' Examiners
52
Practicing Counselors
53
Practicing Psychologists
54
Professional Engineers and Land Sur\'e}
'ors 56
Real Estate Commission
58
Refrigeration Examiners
60
Sanitarian Examiners
62
Social Work
63
Speech and Language Pathologists and
64
Audiologists
Vetcrinarv Medical Board
66
Note: Title 21 contains the chapters of the various occupational licensing boards.
4:24 NORTH CAROLINA REGISTER March 15, 1990
1221
CUMULA TIVE INDEX
CUMULA TIVE INDEX
(April 1989 - March 1990)
{
1989 - 1990
Pages
Issue
1 - 151 1 - April
152 - 192 2 - April
193 - 216 3 - May
217 - 289 4 - May
290 - 311 5 - June
312 - 364 6 - June
365 - 454 7 - July
455 - 477 8 - July
478 - 521 9 - August
522 - 584 10 - August
585 - 616 11 - September
617 - 658 12 - September
659 - 712 13 - October
713 - 765 14 - October
766 - 801 ...15 - November
802 - 825 16 - November
826 - 856 17 - December
857 - 891 18 - December
892 - 929 19 - .January
930 - 1020 20 - .January
1021 - 1105 21 - Fcbaiary
1106 - 1139 22 - February
1140 - 1162 23 - March
1163 - 1225 24- March
AO - Administrative Order
AG - Attorney General's Opinions
C - Correction
FR - Fmal Rule
GS - General Statute
JO - Judicial Orders or Decision
M - Miscellaneous
NP - Notice of Petitions
PR - Proposed Rule
SO - Statements of Organization
TR - Temporary Rule
ADMIM.STRATION
State Construction, 827 PR
ADMrSISTRATrVE UKARPsGS
General, 879 PR
Ileanngs Division, 880 PR
Rules Division, 880 PR
i
1222
4:24 NORTH CAROLINA REGISTER March 15, 1990
CUMULA TIVE INDEX
ADMINISTRATIVE ORDER
Administrative Order, 4, 1 52, 802
AGRICULTURE
Agronomic Services, 1 108 PR
Cotton Warehouse, 220 PR
Gasoline and Oil Inspection Board, 931 PR
Markets, 217 PR, 546 PR, 1108 PR
Pesticide Board, 292 PR
Plant Conservation Board, 196 PR
Plant Industry, 153 PR, 218 PR, 895 PR, 1109 PR
State Fair, 217 PR, 1108 PR
COMMLAITY COLLEGES
Board of Community Colleges, 352 PR
CORRECTION
Departmental Rules, 815 FR
Division of Prisons, 472 FR, 646 FR, 759 FR, 817 FR, 883 FR, 1007 FR, 1220 FR
CRIME CONTROL AND PUBLIC SAEETY
Victim and Justice Services, 573 PR
CULTURAL RESOURCES
Arcl-uves and Ilistorv, 370 PR, 455 PR, 593 PR, 720 PR
/\rts Council, 371 PR
U.S.S. North Carolina Battleship Commission, 548 PR
ECONOMIC AND COMML^ITY DEVELOPMENT
Banking Commission, 1023 PR, 1164 PR
Cemcter>'- Commission, 198 PR, 766 PR
Commumty Assistance, 858 PR, 1121 PR
Credit Union, 1026 PR
Departmental Rules, 901 PR, 1 1 14 PR
Energy Division, 1142 PR
Fiaance Center, 368 PR
Hazardous Waste Manasjement Commission, 716 PR, 834 PR, 1119 PR
Milk Commission, 455 PR, 834 PR
Savings Institutions Division: Savings Institutions Commission, 1171 PR
Seafood Industrial Park Authority, 806 PR
EDUCATION
Elementary- and Secondary Education, 253 PR, 295 PR, 511 PR, 739 PR, 843 PR 1143 PR,
1218 PR
ELECTIONS, STATE BOARD OE
Departmental Rules, 661 PR
ENV IRONMENT, HEALTH, AND NATURAL RESOURCES
Coastal Management, 239 PR, 508 PR, 574 PR, 735 PR, 1078 PR
Community Assistance, 134 PR
Departmental Rules, 601 PR
Fconomic Opportunity, 178 PR
Environmental Management, 18 PR, 160 PR, 202 PR. 238 PR, 295 PR, 347 PR, 431 PR, 456 PR,
700 PR, 730 PR, 866 PR, 992 PR, 1072 PR, 1217 PR
Governor's Waste Manaccment Board, 617 C
Land Resources, 868 PR''
Marine Fishcncs, 47 PR, 457 PR, 866 PR
4:24 NORTH CAROLINA REGISTER March 15, 1990 1223
CUMULA TIVE INDEX
Wildlife Resources and Water Safety, 134 PR, 178 PR, 207 PR, 252 PR, 574
PR 700 PR 738 PR
776 PR, 809 PR, 872 PR, 903 PR, 1130 PR, 1142 PR
FINAL DECISION LETTERS
Voting Rights Act, 5, 193, 367, 523, 587, 618, 659, 714, 803, 857, 1022, 1106
FESAL RULES
List of Rules Codified, 183 FR, 274 FR, 303 FR, 445 FR, 515 FR, 609 FR, 704 FR, 788 FR,
847 I'R, 1009 FR, 1097 I-R
GOV ERNOR/LT. GOVERNOR
Executive Orders, 1, 290, 312, 365, 478, 522, 585, 713, 826, 892, 930, 1021, 1140, 1163
HUMAN RESOURCES
AFDC, 1198 PR
Aging, Division of, 859 PR
Departmental Rules, 372 PR
Fconomic Opportunity, Division of, 1070 PR
Fmploymcnt Programs, 1062 PR
Facility Services, l99 PR, 377 PR, 594 PR, 1029 PR, 1 188 PR
Governor's Waste Management Board, 552 PR
Health Services, 153 PR, 315 PR, 405 PR, 661 PR, 933 PR
Individual and Family Support, 1063 PR
Medical Assistance, 158 PR, 294 PR, 455 PR, 549 PR, 601 PR, 620 PR, 722 PR, 808 PR, 1068 PR
Mental Health, Mental Retardation and Substance Abuse Ser\'ices, 17 PR, 417 PR, 685 PR, 960 PR
Services for the Blind, 1067 PR
Social Services, 550 PR, 773 PR
Vocational Rehabilitation Services, 7 PR, 766 PR
Water Treatment Facility Operators Board of Certification, 549 PR
INDEPENDENT AGENCIES
Housing Finance Agency, 459 PR
INSl RANGE
Admission Requirements, 836 PR
Agent Services Division, 561 I'R
Engineering and Building Codes, 775 PR, 1071 PR, 1199 PR
Fu-e and Casualty Division, 202 PR, 479 PR, 689 PR, 986 PR, 1 123 PR
Life, Accident and Health Division, 690 PR
JUSTICE
Alarm Systems Licensing Board, 991 PR
Criminal Justice Education and Training Standards Commission, 569 PR, 860 PR
Private Protective Services Board, 621 PR, 990 PR
Sheriff's Fiducation and Training Standards Division, 4'M PR
LABOR
Apprenticesliip and Training Division, 1216 PR
LI( ENSING BOARDS
Arcliitecturc, 349 PR
CPA Examiners, 458 PR, 810 PR
Cosmetic /\rt Examiners, 1133 PR
Electrical Contractors, 741 PR
General Contractors, 512 PR, 844 PR
Geologists, Board for Licensing of, 878 PR
Landscape .Architects, 443 PR,^756 PR
Medical Fxamincrs, Board of, 604 PR, 701 PR, 1081 PR
1224 4:24 NORTH CAROLINA REGISTER March 15, 1990
{
CUMVLA TIVE INDEX
North Carolina Certification Board for Social Work, 179 PR
Nursing, Board of, 296 PR, 778 PR
Pharmacy, Board of, 1087 PR
Physical Therapy F.xamincrs, 262 PR
Plumbing and Heating Contractors, 757 PR
Practicing Psychologists, 606 PR
Real Estate Commission, 993 PR
Sanitarian Examiners, Board of, 785 PR
Social Work, Certification Board for, 1 144 PR
REVENUE
Departmental Rules, 885 FR
Motor Fuels Tax Division, 1093 FR
Sales and Use Tax, 353 FR
STATE PERSON^SEL
State Personnel Commission, 181 PR, 210 PR, 265 PR, 461 PR, 624 PR, 786 PR, 923 PR, 1 145 PR
STATEMENTS OF ORGANIZATION
Statements of Organization, 524 SO
TRANSPORTATION
Division of Motor Vehicles, 140 FR, 607 FR, 648 FR
4:24 NORTH CAROLINA REGISTER March 15, 1990 1225
i
NORTH CAROLINA ADMINISTRATIVE CODE
The full publication consists of 52 volumes, totaling in excess of 15,000 pages. It is supplemented monthly
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